Eu Ets Price Floor

Taking stock and examining carbon.

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. The uk has introduced a price floor of 18 per ton co 2 for power plants that is additional to the eu ets. Allowance prices were for many years far lower than expected prompting calls for a price floor. It concludes by discussing potential entry points for introducing a carbon price floor in the context of the upcoming eu climate policy process.

Now that prices have risen some argue this is no longer necessary. By anna leipprand and christian flachsland. All opinions in this column reflect the views of the author s not of euractiv media network. The main part of the paper section 4 identifies five myths in the debate about an eu ets price floor and critically challenges them.

Implementing a complementary price ceiling is a logical parallel step. 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. The carbon price floor cpf is a uk government policy implemented to support the eu emissions trading system eu ets. 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.

Co2 european emission allowances price. 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. 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 main part of the paper 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. It builds on the workshop eu ets reform. The case for a price floor in the eu ets disclaimer.