Eu Ets Price Floor

A carbon price floor in the reformed eu ets.

Eu ets price floor.

Section 5 concludes by discussing potential entry points for introducing a carbon price floor in the context of the upcoming eu climate policy process. The uk has introduced a price floor of 18 per ton co 2 for power plants that is additional to the eu ets. Implementing a complementary price ceiling is a logical parallel step. Plant operators are obliged to pay the difference between the current price in the eu ets and the domestic floor price to the tax authorities.

The main part of the paper identifies five myths in the debate about an eu ets price floor and critically challenges them. Allowance prices were for many years far lower than expected prompting calls for a price floor. The fact that germany recently endorsed the implementation of an eu ets price floor has created a critical mass in support for this measure which if followed through politically can enable its adoption. The cpf was introduced on 1 april 2013 to underpin the price of carbon at a level that drives low carbon investment which the eu ets has not achieved.

With a carbon price floor co2 emissions from the power sector could be reduced by additional 29 by 2030 in the carbon price floor area while total eu power sector emissions are reduced. Get all information on the price of co2 european emission allowances including news charts and realtime quotes. Co2 european emission allowances price. The case for a price floor in the eu ets disclaimer.

It concludes by discussing potential entry points for introducing a carbon price floor in the context of the upcoming eu climate policy process. By anna leipprand and christian flachsland. All opinions in this column reflect the views of the author s not of euractiv media network. Now that prices have risen some argue this is no longer necessary.

The main part of the paper section 4 identifies five myths in the debate about an eu ets price floor and critically challenges them. The eu ets a market where companies trade allowances was introduced in 2005 with the aim of reducing greenhouse gas emissions in europe. Design matters i martin hintermayera adepartment of economics and institute of energy economics university of cologne vogelsanger strasse 321a 50827 cologne germany abstract despite the reform of the european emissions trading system eu ets discussions about.