Carbon prices at sufficiently high levels can push firms to internalise the costs of greenhouse gas emissions while providing a long-term price signal to drive investments needed for decarbonisation. Emission trading systems and carbon taxes feature in a growing number of climate strategies, but even the most well-designed instruments must be accompanied by other policy measures if emissions reductions goals are to be reached
A number of international markets are introducing carbon markets at different price levels to help reduce emissions
PRICE POINT Many market analysts predict carbon prices of over $100 per tonne across most markets in the near future
TOUGH QUESTIONS Businesses are being asked how they will adapt operations to deal with the growing carbon prices
KEY QUOTE A clear price signal provides companies and investors with greater certainty regarding future price levels for efficient capital allocation ...
Try FORESIGHT - 30 days for €29
Recent Eurelectric analysis reveals the need to reconsider and improve a number of policies and priorities as part of the European Green Deal — the EU Emissions Trading System and an effective carbon pricing for non-ETS require careful consideration, says Petar Georgiev, Eurelectric Policy Advisor climate & e-mobility
Europe is considering taking the bold step of introducing a border carbon adjustment tariff on goods imported from regions where carbon pricing is lacking, placing trade right in the middle of its climate ambitions
Border carbon adjustments (BCAs) are technically difficult to design and politically challenging to implement. If BCAs are going to succeed, the European Union (EU) will need to engage trade partners from the start, says E3G’s Johanna Lehne
Cement and steel manufacturing are two of the most carbon intensive industries in the world. Electrification can play a role in decarbonising both, though technology innovation is expensive and removing all emissions from the processes is a tall order
Brexit, by excluding the UK from Europe’s carbon emissions trading system, has stripped British industry of the value of its carbon credits. Rescue options being considered by the UK government include linking back to the EU market, but also taking the risk of joining an immature multinational carbon trade cooperation
The introduction of a carbon price in the building sector will only encourage fuel switching and burden those least able to pay with the cost of decarbonisation. If implemented, it should be complemented with legislation to boost energy efficiency, says Monica Frassoni of the European Alliance to Save Energy
Facing the prospect of huge bills for emissions allowances by 2030, cement companies must act now to accelerate the decarbonisation of the industry, says Fleming Voetmann at FLSmidth
In this episode, David, Michaela and Jan discuss where we are, how we got here and where we are going as the global economy continues its quest to ditch carbon emissions by mid-century
Carbon-capture technology’s role in the energy transition is still poorly defined. However, calls for a unified strategy to spur developments and investment in Europe are increasing