LONDON - The European carbon market will probably see a continued over-supply of emissions permits through 2008-12, damaging the credibility of the climate change policy, energy consultants Wood Mackenzie said on Tuesday. Carbon markets are meant to drive cuts in greenhouse gases blamed for global warming by ensuring a shortage when issuing emissions permits for heavy industry. But the European emissions trading scheme (ETS) allows affected businesses to buy additional permits, or carbon offsets, from developing countries outside the scheme. The problem is that this extra supply of offsets will easily exceed the shortage of carbon emissions permits within Europe,...