EU Ministers must stop the flood of CO2 emissions allowances
The carbon price must be urgently boosted to fix the EU's Emissions Trading System and fight climate change. EU environment ministers discussed raising the carbon price in the ETS at their informal meeting in Horsens, Denmark today.
The carbon market is currently overflowing with spare emissions allowances due to the economic crisis, which has sent the carbon price down. The most effective way of pushing the price back up would be by avoiding too many allowances coming onto the market in the coming years.
"The EU ministers need to ensure no more emissions allowances are put on the market. This must be included in the Energy Efficiency Directive, currently being negotiated between the Council of Ministers and the European Parliament, where decisions can be taken by a majority of Member States. This directive is the only upcoming legislative opportunity to push such a measure", commented Rémi Gruet, Senior Regulatory Affairs Advisor for the European Wind Energy Association (EWEA).
The European Parliament supports such a move: it voted by a significant majority in favour of withholding carbon allowances in the ETS in a report on the low carbon roadmap 2050 in February. There is widespread support from energy companies and the wind energy industry for such a move.
Posted by Gloria Llopis | 2012-04-19