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EU Carbon plan needs German backing

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Monday, 21 January 2013

EU Carbon plan needs German backing

A European Commission plan to reduce a glut of carbon emissions allowances, which are trading close to record lows, can pass provided it gets German support, EU Climate Commissioner Connie Hedegaard said.
The European Commission proposal, known as backloading, would remove permits from the first three years of the new phase of the carbon market (2013-2015) and put them back on the market at the end of it (2019-2020).
Coal-dependent Poland strongly opposes price-raising moves on the EU's Emissions Trading Scheme (ETS), where a surplus generated mostly by recession has plunged the price to less than €6 per tonne, compared with around €30 in 2008.
But the backloading plan, which many say is urgently needed to restore faith in the ETS, can still pass, Hedegaard said. "Yes, if the Germans back it. And then I hope the UK would also come out in favour of that because obviously they have said they want to be even more ambitious, but in politics sometimes you have to take what you can get when you can get it," Hedegaard said in an interview with Reuters.
"If that changes after the elections in Germany, yes then I think we will get them," she said at the World Future Energy Summit in Abu Dhabi.
"During the Irish presidency, we will be seeking a mandate that we can start the very formal negotiations," Hedegaard said of the talks with Australia.
"It is just one part of the bigger vision that in the end - not tomorrow, not next year, not in the very foreseeable future - but in the end, the aim should be to have a global price on carbon."

Source: European Commission