May 30, 2011. The Europe Union's carbon market could be flooded with excess pollution permits over the next decade, cutting prices in half and depriving governments of billions in budgeted revenues. It is not clear, however, whether European governments will support measures that would erode carbon prices, which would put a severe dent in budgeted government revenues in 2013-2020. It would also undermine investment in green technology, a key economic driver in countries such as Germany and Denmark.