15 February 2013 17:40 [Source: ICIS news]
LONDON (ICIS)--The president of ?xml:namespace>
Prices for carbon dioxide (CO2) certificates on the ETS are trading at record lows, prompting calls that Brussels intervene in the market to raise prices by reducing the number of certificates.
However, VCI president Karl-Ludwig Kley said that the ETS market system is working exactly as it should, and that the low prices are the best evidence for that.
In an article he contributed to
First, in 2009
Third, industry is investing in environmentally-efficient equipment and plants.
“There is no justification at all for political intervention,” Kley said.
“On the contrary: The current price level is the best evidence that climate change targets can be achieved with market instruments, and without harming the competitiveness of our industry,” he said.
“And this proves that environmental protection does not always have to be expensive to work well,” he said.
“The cost is significantly lower than originally estimated. So we should all be happy,” he added.
Instead of putting forward proposals to “set aside” or “back load” CO2 certificates, Kley said that officials in Brussels should rather “lean back and think again” as the European emissions trading market was working out well.
The EU launched the ETS in 2005 as part of its policy to combat climate change and reduce industrial greenhouse gas emissions cost-effectively.
The ETS covers more than 11,000 power stations and industrial plants in 31 countries, as well as airlines. It is now in its third phase, running from 2013 to 2020.
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