EU ETS

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...]

How to boost CO2 prices in the European carbon market

photo Daniel Patman

If the EU is serious about raising the carbon price in the EU Emission Trading System (ETS), the best option for the short term is to strengthen the Market Stability Reserve by increasing the amount of “surplus allowances” taken out of the system, according to Hæge Fjellheim, Head of carbon analysis  at Thomson Reuters Point Carbon. Fjellheim discusses progress on the ETS reform in light of the recent vote in the European Parliament’s Environment … [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...]

To keep European offshore wind world-leading, we need an industrial policy

photo Danish Wind Industry Association-slider

To retain the global lead European companies have in offshore wind, the EU should develop an industrial policy that will guarantee a steady pipeline of projects, writes independent energy expert Mike Parr. This would ensure continued investment by companies in cost reduction and technology improvements. Failure to do so could mean the offshore wind sector would suffer the same fate as the European solar PV industry. … [Read more...]