The cost of UK pollution rights slumped to a two-year low, with prices now almost half those of their European Union counterparts.

The decline in carbon permits has accelerated since early July, when the government unveiled its plans for reforming the country’s emissions market. While the proposals tighten the cap on the rights through 2030 by about 30%, it comes with the release of about 54 million allowances from 2024 to 2027 to ease the pace of the supply cut and effectively make it cheaper for industry to emit CO2.

Read more: UK Carbon Market to Slash Supply as It Punts Other Reforms

The carbon slump comes as Prime Minister Rishi Sunak committed to granting hundreds of new licenses for oil and gas production in the North Sea amid growing concerns among his party that green policies can hurt household finances. Even so, it’s a risk to be perceived to be backing away from tackling climate change, at a time when examples of global warming are becoming more prevalent.

--With assistance from Joe Mayes and Kitty Donaldson.