Carbon Prices Must Go Up

According to EU environment ministers, the carbon price must be urgently boosted to fix the EU’s Emissions Trading System (ETS) and fight climate change. This message was delivered today during in an informal discussion in Horsens, Denmark. The focus of the meeting was whether or not to raise the carbon price in the ETS.

In a statement by the European Wind Energy Association (EWEA) who held its annual international wind conference earlier this week, the carbon market is overflowing with spare emission allowances due to the economic crisis.  The result has been the lowering of carbon prices.  EWEA says the most effective way to push the price back up is by avoiding too many allowances coming into the market in the next few years.

“The EU ministers need to ensure no more emissions allowances are put on the market,” said Rémi Gruet, Senior Regulatory Affairs Advisor for EWEA. “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.”

EWEA says the European Parliament supports such as move and voted by a large margin in favor of withholding carbon allowances in the ETS and voiced it’s decision in the low carbon roadmap 2050 that was released this past February. In addition, there is major support from energy companies and the wind energy industry for such a move to take place.