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Lawmakers close in on EU carbon market ‘frontloading’ to lower energy prices
(EurActiv, 28 Sep 2022) Political groups in the European Parliament announced a deal on Tuesday (27 September) that will see the equivalent of €20 billion taken from the EU carbon market in a bid to finance the move away from Russian fossil fuels and lower consumer energy bills.
The EU carbon market is responsible for 10% of the rise in electricity prices, according to Peter Liese, a German MEP who is steering the revision of the EU’s Emissions Trading Scheme (ETS) in the European Parliament.
The short-term fix will see a “frontloading” of CO2 emission allowances in order to flood the EU carbon market with liquidity, send the price of carbon down, and ease pressure on electricity prices, he explained.
“My assumption is that this intervention will keep the price well below €100 [per tonne of CO2 emitted],” the German conservative MEP told journalists at a press briefing on Tuesday.
Liese, whose father was a baker, said many SMEs were struggling to survive and needed all the support they could get from the EU to lower their energy bills.
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EurActiv, 28 Sep 2022: Lawmakers close in on EU carbon market ‘frontloading’ to lower energy prices
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