Energy firms, investors rally behind EU CO2 market fix
Thirty firms and organisations, including energy companies Shell, E.On and EdF, wrote to MEPs, ministers and member state officials on Thursday urging them to support the EU Commission’s so-called backloading plan in a key vote on Feb. 19.
“The EU has an opportunity to stimulate our own economy through the development of new, and low carbon, industries while at the same time continuing to show global leadership on climate change issues. However, policy makers must act now to support the ETS,” the letter dated Feb. 14 said.
Separately, the Institutional Investors Group on Climate Change (IIGC), which represents almost 100 investment managers with 7.5 trillion euros under management, has written to the same lawmakers urging them to back the plan.
The plan would allow the EU Commission to postpone the sale of up to 900 million permits to prop up carbon prices trading at around 5 euros.
Stephanie Pfeifer, executive director of the IIGC, said: “The collapse of the carbon price and the direction of EU energy policy are creating uncertainty amongst investors concerned by climate change and weakening the case for investment in Europe’s low-carbon sector.
MEPs will vote on the plan in the European Parliament’s environment committee on Tuesday Feb. 19 before sending to the Council of Ministers and member state officials in the Climate Change Committee for endorsement.
However, lawmakers are split in all three institutions on the proposal, which involves postponing the sale of permits until 2019-2020.
Coal-reliant Poland is trying to block the measure, while lawmakers in the biggest political party in Europe’s parliament, the European People’s Party, are split on the issue.
All three institutions need to approve the plan before it can become law.
Analysts said if the measure passes, carbon prices could surge from current levels of around 5 euros to back to double digits.
Without the plan ,and subsequent structural reform of the scheme to eventually retire the permits, prices will remain depressed under the weight of a surplus of up to 2 billion permits.
“The current carbon price will not stimulate low-carbon investments or innovation,” the letter from the 30 companies said.
By Andrew Allan – firstname.lastname@example.org
- 24 May 13 00:17CCAs slip 2 pct as auction results meet expectations
- 23 May 13 20:18INTERVIEW: Quebec eyes new CO2 trading partners, higher target
- 23 May 13 18:41EU carbon rebounds from 3-week low to end up 2 pct
- 23 May 13 18:24US carbon tax could boost revenue, curb climate change: CBO
- 23 May 13 16:51Falling profit margins for German utilities threaten CO2 prices
- 23 May 13 11:03EU sells 3.462 mln carbon permits at 3.20 euros each
- 23 May 13 09:53NZ carbon hits 11-week low on supply glut
- 23 May 13 09:44Merkel protege struggles with Germany's green revolution
- 23 May 13 03:45Hope builds that China CO2 cap could unblock climate talks
- 22 May 13 22:30EU leaders tout CO2 market role in energy upgrade
- 22 May 13 21:06New California carbon offset insurance product comes to market
- 22 May 13 19:08ICE to relaunch spot CO2 credit trade May 27
- 22 May 13 17:53Deutsche Bank's CO2 offset portfolio for sale: sources
- 22 May 13 17:45EU carbon hits six-day low on supply, low energy prices
- 22 May 13 11:14Shale gas, energy costs vex EU leaders
- 22 May 13 11:03Britain sells 4.13 mln EU carbon permits at 3.43 euros each
- 22 May 13 04:07Amazon deforestation carbon emissions up 55 pct: report
- 21 May 13 23:53Aviation officials see global emissions deal possible by 2020
- 21 May 13 21:06California carbon permits sell for record high price of $14/t
- 21 May 13 17:41FACTBOX-Cost factors dominate EU energy policy debate
- 21 May 13 17:13ANALYSIS-German households pay for lower industrial power prices
- 21 May 13 16:59EU carbon steady above 3.50 euros as sale clears safely
- 21 May 13 14:42UK to compensate industry 113 mln stg for EU CO2 costs
- 21 May 13 14:31China’s Shenzhen eyes expanded CO2 market by 2015
- 21 May 13 11:02EU emissions auction clears at 3.49 euros: traders
Thomson Reuters Point Carbon's OTC price assessments
EUA last 30 days
Most read news
Most read News last 7 days: