The EU Emissions Trading Scheme (EU-ETS) is one of the world’s largest carbon markets, covering 40% of greenhouse gas emissions in the European Union. However, there is currently no minimum price built into the EU-ETS. The price of carbon has fluctuated significantly in the past few months. This means investors can’t rely on a predictable carbon price to level the playing field with their investments in breakthrough clean technologies.
Today we publish a joint paper with Jacques Delors Institute and Epico Klimainnovation, arguing that the EU should implement a carbon price floor to boost investments in clean technologies, that Member States can take the lead and enact local price floors, and that the price floor should increase every year, taking into account inflation and our climate objectives.
Read the full paper here: https://bit.ly/carbonpricefloor