cover image: Can a minimum price on carbon accelerate the adoption of clean

20.500.12592/0h6gw2

Can a minimum price on carbon accelerate the adoption of clean

27 Jun 2022

Can a minimum price on carbon accelerate the adoption of clean technologies? 7 CLEANTECH FOR EUROPE 02 Approaches to designing a carbon price floor Can a minimum price on carbon accelerate the adoption of clean technologies? 8 The idea of a minimum price in an emissions trading system is not new. [...] 30 In the aftermath of the price fluctuations in the EU-ETS triggered by Russia’s second invasion of Ukraine and the European energy crisis, it has been suggested that the implementation of a price collar can play the role Can a minimum price on carbon accelerate the adoption of clean technologies? 9 of a “safety valve” for the EU-ETS. [...] If the market price in the EU-ETS is below that strike price, the government would pay the difference while, if the carbon price is higher, the project developer would return the additional revenues to the government.35 Several Member States such as Germany36, France37 and the Netherlands38, as well as the EU39 are exploring the possibility of utilising CCfDs to support the decarbonisation of thei. [...] 51 With the ongoing revision of the EU-ETS Directive in the framework of the Fit for 55 Package released in July 2021, the idea of setting a carbon price floor returned to the realm of deliberation, 52 albeit not as one of the topics of EU-ETS reform in the Package. [...] Can a minimum price on carbon accelerate the adoption of clean technologies? 14 CLEANTECH FOR EUROPE Recommendations Can a minimum price on carbon accelerate the adoption of clean technologies? 15 The impact of recent events, such as the Russian invasion of Ukraine, the COVID-19 pandemic, and Brexit, underlines that addressing exogenous shocks is paramount to mitigate the volatility of the carbon.
Pages
23
Published in
France