carbon trading

How not to squander $130 trillion – a proposal to put carbon money in wealth funds

carbon pricing (photo The New Economy Magazine)

The proceeds from carbon pricing should be used to establish wealth funds from which current and future citizens can benefit, proposes energy and climate change economist Adam Whitmore. As all people have equal rights to the atmosphere, all should benefit from the use of this unique resource. … [Read more...]

Exclusive – Klaus Shäfer, CEO Uniper: “Security of supply is too important to leave to the market”

Klaus Schäfer-slider

The market on its own cannot be relied upon to deliver secure electricity and gas supplies, says Klaus Schäfer, CEO of Eon-spin-off Uniper, in an exclusive interview with Energy Post. According to Schäfer, it will become “dramatically more difficult” to balance the power market as the share of renewables increases. He also sees the gas market becoming “more and more complex” and argues policymakers should establish minimum requirements for gas … [Read more...]

Can emissions trading produce adequate carbon prices? That’s the question

Emission trading: not taking off

Prices under emissions trading schemes have been low, unlike some carbon taxes. This undermines confidence in this key climate instrument, writes energy and climate change economist Adam Whitmore. The EU should take the lead in demonstrating that emissions trading can work, or climate change efforts will suffer. … [Read more...]

Emissions trading: Time to make it work

World Bank Group President Jim Yong Kim at a post-Paris conference (photo World Bank)

There is broad consensus that carbon pricing should be one of the key measures to deal with global warming, yet there has been no effective emission trading scheme anywhere in the world, writes Stig Schjolset, who this week is leaving his job as head of carbon analysis at Thomson Reuters Point Carbon to become special advisor on climate policy and green growth to the Norwegian government. According to Schjolset this is not because there is … [Read more...]

What a CO2 price floor can (and cannot) do for German climate goals

photo Luc van Braekel-slider

Germany can meet its climate goals for the energy sector if it introduces a CO2-price floor of between €50 and €75 per ton, write Fabian Huneke, Carlos Perez Linkenheil and Simon Göß from the Berlin-based independent energy market specialist Energy Brainpool. However, if neighbouring countries don’t take similar measures, more than half of the reduced CO2- emissions will be shifted abroad, note the authors. As long as power markets are … [Read more...]

A carbon pricing scheme that works

Ferrybridge C Power Station in West Yorkshire closed in March 2016

The UK’s carbon price floor mechanism has proved very effective at securing cost-effective emissions reductions, writes energy and climate change economist Adam Whitmore. It offers lessons for other carbon pricing schemes, such as the EU Emission Trading System. … [Read more...]

Europe should look at consumption of renewables not just production

hydropower plant Norway (photo Statkraft)

European consumers actively chose to buy more than 550TWh of renewable electricity last year, 20% of all electricity consumption. Yet EU member states are not required to report on consumption of renewables, only  production. This gives a false picture of what is happening in the market, say business representatives involved in purchasing and producing green electricity. Dual reporting - of consumption and production - would show that some … [Read more...]