Eu Carbon Price Floor

Taking stock and examining carbon price floor options held at ceps in brussels on july 3 2018.

Eu carbon price floor. This week s statement by energy companies says a carbon price floor would mean carbon dioxide emissions from the power sector could be reduced by an additional 29 per cent by 2030 in the carbon price floor area while total eu power sector emissions could be cut by 17 per cent. It concludes by discussing potential entry points for introducing a carbon price floor in the context of the upcoming eu climate policy process. A second eu ets price floor implementation option has already been introduced by the uk hirst 2018. The uk carbon price floor cpf requires power sector facilities covered by the eu ets to pay a carbon price support cps that scales with eua prices to ensure that a specific domestic minimum carbon price is always achieved.

The fact that germany recently endorsed the implementation of an eu ets price floor has created a critical mass in support for this. No change on carbon price floor. 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. 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.

Our views haven t changed on the ongoing debate about the pros and cons of a carbon price floor said an ec spokeswoman who asked not to be named in an emailed statement june 18. A european commission official said no decisions had been made on whether to propose minimum carbon prices under the eu ets. And ii the carbon support price cps which tops up the eu ets allowance prices as projected by the government to the carbon floor price target. It builds on the workshop eu ets reform.

I the eu ets allowance price. The carbon price floor cpf is a uk government policy implemented to support the eu emissions trading system eu ets. Eu commission president ursula von der leyen has presented a carbon border tax as an important tool to ensure that eu companies can compete on a level playing field with. A carbon price collar as implemented in many other schemes worldwide is needed to safeguard against these risks in the future.

The price floor consists of two components which are paid for by energy generators in two different ways.