The European Union’s head of climate change policy warned against policymakers intervening in the carbon market on Friday (7 May), after the price of EU carbon permits soared this week to record highs.
The COVID-19 crisis should strengthen Europe’s resolve to achieve the climate objectives of the Paris Agreement by triggering policies that maintain fossil fuel prices above a minimum level, French authorities have said.
A group of sixteen European energy companies including France’s EDF, Germany’s E.ON, and Denmark’s Ørsted, have proposed introducing a carbon price floor at European or regional level, as a way to the speed up the transition to a low-carbon economy.
EU carbon prices could average €35-40 per tonne over 2019-2023, accelerating the switch from coal to gas and questioning the rationale for keeping old coal and lignite power plants running beyond 2021, said a new report by Carbon Tracker released on Tuesday (21 August).
Neither France nor Germany is ready to acknowledge a cooling down in their relationship. But the German government's complete lack of flexibility is ruffling the feathers of the French side. EURACTIV.fr reports.
Paris will push for a carbon price floor at EU level, complete with a carbon tariff at Europe's external border for countries that don't sign up to the Paris Agreement, French President Emmanuel Macron said in Brussels on Thursday (22 March).
The recently adopted reform of the EU Emissions Trading Scheme (EU ETS) is insufficient to trigger cost-efficient decarbonisation of the economy, argue Christian Flachsland and Anna Leipprand. A carbon floor price that starts at a significant level and rises over time would address the problem, they write.