Eu Ets Price Floor

The main part of the paper identifies five myths in the debate about an eu ets price floor and critically challenges them.

Eu ets price floor.

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. A carbon price floor in the reformed eu ets. The eu ets a market where companies trade allowances was introduced in 2005 with the aim of reducing greenhouse gas emissions in europe. The uk has introduced a price floor of 18 per ton co 2 for power plants that is additional to the eu ets.

Taking stock and examining carbon. The main part of the paper section 4 identifies five myths in the debate about an eu ets price floor and critically challenges them. It concludes by discussing potential entry points for introducing a carbon price floor in the context of the upcoming eu climate policy process. Co2 european emission allowances price.

The case for a price floor in the eu ets disclaimer. The carbon price floor cpf is a uk government policy implemented to support the eu emissions trading system eu ets. 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. 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.

By anna leipprand and christian flachsland. Allowance prices were for many years far lower than expected prompting calls for a 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. Implementing a complementary price ceiling is a logical parallel step.

All opinions in this column reflect the views of the author s not of euractiv media network. It builds on the workshop eu ets reform. Now that prices have risen some argue this is no longer necessary.