European Green Deal
Date: 2021-07-16
On Wednesday the 14th, the European Commission (EC) announced the adoption of a package of proposals to make the EU's climate, energy, land use, transport and taxation policies fit for reducing net greenhouse gas emissions by at least 55 pct by 2030 (Fit for 55), compared to 1990 levels. Achieving these emission reductions in the next decade is crucial to Europe becoming the world's first climate-neutral continent by 2050 and making the European Green Deal a reality. With today's proposals, the Commission is presenting the legislative tools to deliver on the targets agreed in the European Climate Law and fundamentally transform our economy and society for a fair, green and prosperous future. The following proposals will enable the necessary acceleration of greenhouse gas emission reductions in the next decade:

The EU Emissions Trading System (EU ETS) puts a price on carbon and lowers the cap on emissions from certain economic sectors every year. It has successfully brought down emissions from power generation and energy-intensive industries by 42.8 pct in the past 16 years. The EC is proposing to lower the overall emission cap even further and increase its annual rate of reduction and to phase out free emission allowances for aviation and align with the global Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and to include shipping emissions for the first time in the EU ETS.

To complement the substantial spending on climate in the EU budget, Member States should spend the entirety of their emissions trading revenues on climate and energy-related projects. A dedicated part of the revenues from the new system for road transport and buildings should address the possible social impact on vulnerable households, micro-enterprises and transport users.

The Effort Sharing Regulation assigns strengthened emissions reduction targets to each Member State for buildings, road and domestic maritime transport, agriculture, waste and small industries. Recognizing the different starting points and capacities of each Member State, these targets are based on their GDP per capita, with adjustments made to take cost efficiency into account.

Member States also share responsibility for removing carbon from the atmosphere, so the Regulation on Land Use, Forestry and Agriculture sets an overall EU target for carbon removals by natural sinks, equivalent to 310 million tonnes of CO2 emissions by 2030. National targets will require Member States to care for and expand their carbon sinks to meet this target. By 2035, the EU should aim to reach climate neutrality in the land use, forestry and agriculture sectors, including also agricultural non-CO2 emissions, such as those from fertilizer use and livestock. The EU Forest Strategy aims to improve the quality, quantity and resilience of EU forests. It supports foresters and the forest-based bioeconomy while keeping harvesting and biomass use sustainable, preserving biodiversity, and setting out a plan to plant three billion trees across Europe by 2030.

Energy production and use accounts for 75 pct of EU emissions, so accelerating the transition to a greener energy system is crucial. The Renewable Energy Directive will set an increased target to produce 40 pct of our energy from renewable sources by 2030. All Member States will contribute to this goal, and specific targets are proposed for renewable energy use in transport, heating and cooling, buildings and industry. To meet both our climate and environmental goals, sustainability criteria for the use of bioenergy are strengthened and Member States must design any support schemes for bioenergy in a way that respects the cascading principle of uses for woody biomass.

To reduce overall energy use, cut emissions and tackle energy poverty, the Energy Efficiency Directive will set a more ambitious binding annual target for reducing energy use at EU level. It will guide how national contributions are established and almost double the annual energy saving obligation for Member States. The public sector will be required to renovate 3 pct of its buildings each year to drive the renovation wave, create jobs and bring down energy use and costs to the taxpayer.

A combination of measures is required to tackle rising emissions in road transport to complement emissions trading. Stronger CO2 emissions standards for cars and vans will accelerate the transition to zero-emission mobility by requiring average emissions of new cars to come down by 55 pct from 2030 and 100 pct from 2035 compared to 2021 levels. As a result, all new cars registered as of 2035 will be zero-emission. To ensure that drivers are able to charge or fuel their vehicles at a reliable network across Europe, the revised Alternative Fuels Infrastructure Regulation will require Member States to expand charging capacity in line with zero-emission car sales, and to install charging and fuelling points at regular intervals on major highways: every 60 kilometres for electric charging and every 150 kilometres for hydrogen refuelling.

Aviation and maritime fuels cause significant pollution and also require dedicated action to complement emissions trading. The Alternative Fuels Infrastructure Regulation requires that aircraft and ships have access to clean electricity supply in major ports and airports. The ReFuelEU Aviation Initiative will oblige fuel suppliers to blend increasing levels of sustainable aviation fuels in jet fuel taken on-board at EU airports, including synthetic low carbon fuels, known as e-fuels. Similarly, the FuelEU Maritime Initiative will stimulate the uptake of sustainable maritime fuels and zero-emission technologies by setting a maximum limit on the greenhouse gas content of energy used by ships calling at European ports.

The tax system for energy products must safeguard and improve the Single Market and support the green transition by setting the right incentives. A revision of the Energy Taxation Directive proposes to align the taxation of energy products with EU energy and climate policies, promoting clean technologies and removing outdated exemptions and reduced rates that currently encourage the use of fossil fuels. The new rules aim at reducing the harmful effects of energy tax competition, helping secure revenues for Member States from green taxes, which are less detrimental to growth than taxes on labour.

Finally, a new Carbon Border Adjustment Mechanism (Tax) will put a carbon price on imports of a targeted selection of products to ensure that ambitious climate action in Europe does not lead to 'carbon leakage.' This will ensure that European emission reductions contribute to a global emissions decline, instead of pushing carbon-intensive production outside Europe. It also aims to encourage industry outside the EU and our international partners to take steps in the same direction.

European Green Deal, www.ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal_en. (Source: EC, PR, 14 July, 2021)

More Low-Carbon Energy News European Green Deal,  

EU ETS
Date: 2021-07-14
The European Union reports its Emissions Trading System (EU ETS) will soon include maritime emissions. The EU ETS, which forces major EU emitters to pay for each tonne of carbon dioxide they generate, is the keystone of an EU drive to cut net greenhouse gas emissions by 55 pct from 1990 levels by 2030.

Manufacturers, power firms and airlines operating flights inside Europe are already covered by the scheme but, under the EU's recently released plan, maritime shipping would be phased into the ETS over a three-year period. Emissions from sea voyages within the EU, plus 50 pct of ships' emissions from international voyages starting or ending in the EU, would fall under the existing ETS, plus emissions that occur when ships are at berth in EU ports, will be included. (Source: European Commission, 14 July, 2021)

More Low-Carbon Energy News EU ETS news,  Maritime Emissions news,  Carbon Emissions news,  

China Carbon Market,Shanghai Environment and Energy Exchange
Date: 2021-07-09
Following up on our June 30th coverage, the South China Morning Post is reporting the Shanghai Environment and Energy Exchange -- a crucial market-based mechanism to put China on track to reach carbon-neutral status by 2060 -- will begin trading of roughly 4 billion tonnes of carbon emissions contracts before the end of this month, July, 2021.

The Shanghai exchange is expected to surpass the European Union's Emissions Trading Scheme (EU ETS), currently the largest, which seeks to cap 1.61 billion tonnes of carbon emission this year. With an average traded price of $28.28 a tonne, the scheme raised $21.8 billion last year. Some $80.7 billion have been raised on the EU ETS since trading stared in 2005, according to International Carbon Action Partnership.

China's industrial sector reportedly accounted for 28.7 pct of carbon emissions in 2019, while the transport industry made up 8.6 pct and buildings contributed 7 pct, according to the Emission Database for Global Atmospheric Research. (Source: China Center for Energy Economics Research, Xiamen University, Xinhua, South China Morning Post, 8 July, 2021) Contact: China National Development and Reform Commission, www.en.ndrc.gov.cn; China Center for Energy Economics Research, Xiamen University, www.energyxmu.edu.cn

More Low-Carbon Energy News Shanghai Environment and Energy Exchange,  EU ETS,  Carbon Price,  China Carbon Market,  Carbon Trading,  Carbon Emissions,  

China Carbon Market
Date: 2021-06-30
According to the China Center for Energy Economics Research at Xiamen University, China's stalled national carbon market may start trading as soon as next month, but with more moderate standards than originally planned. Even so, the launch of what will be the world's largest carbon market is not expected to have an impact on the country's goal of hitting peak emissions before 2030 and achieving carbon neutrality by 2060, analysts noted.

The long-awaited national carbon market will put a price on carbon and set emission permits and quotas for energy-intensive industries, will initially cover more than 2,200 companies in China's power sector. When finally online, China's market will overtake the EU ETS to become the world's largest, covering 12 pct of global carbon dioxide emissions, according to the Shanghai Environment and Energy Exchange.

The release noted, the biggest barrier for launching a national market lies in the establishment of a multi-dimensional and flexible trading mechanism "It is very difficult to set a unified cap on carbon emissions because CO2 emissions vary in different regions, as does demand for electricity. Some provinces' energy consumption tilts to hydropower, while others rely on coal and accordingly standards for carbon emissions set at the beginning might be relatively moderate and prudent to reduce the impact on the overall economy," according to the Shanghai Environment and Energy Exchange.

Although China's total energy consumption is expected to be controlled within 6 billion tons of standard coal equivalent by 2030, government anticipates "moderate" carbon emissions growth, and the country's energy consumption from 2020 to 2030 should peak at 800 million tons of standard coal equivalent. (Source: China Center for Energy Economics Research at Xiamen University, China National Development and Reform Commission, Global Times, 28 June, 2021) Contact: China National Development and Reform Commission, www.en.ndrc.gov.cn; China Center for Energy Economics Research, Xiamen University, www.energyxmu.edu.cn

More Low-Carbon Energy News EU ETS,  China National Development and Reform Commission,  China Carbon Market,  

EU ETS
Date: 2021-05-05
The EU carbon price has extended its record-breaking rally to jump above €50 ($60 US) a tonne for the first time, pushing up the cost of polluting in the bloc to more than double its pre-pandemic level.

The EU Emissions Trading System (U ETS), which is designed to put a cost on carbon dioxide for some of the most highly polluting industries ranging from power generation, cement production to aviation, has rallied more than 50 pct since the start of the year. (Source: Various Media, 4 Apr., 2021)

More Low-Carbon Energy News EU ETS,  Carbon Price,  

European Parliament
Date: 2021-03-12
The 27-member European Union Parliament (EP) reports it has approved a proposal Carbon Border Adjustment Mechanism -- a tax om imports from countries that do not impose a national carbon price. The tax is slated to come into force in 2023, with the precise details expected be announced in June, this year.

The EU's tax is intended to prevent "carbon leakage" -- carbon emissions that go offshore in response to carbon pricing -- rather than actually being cut. The EU tax will be imposed on carbon intensive imports and will be equivalent to what EU-based industry must pay under the European Union Emissions Trading Scheme (EU ETS).(Source: EU, European Parliment, Mar. 2020) Contact: EU, www.europa.eu

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EU
Date: 2021-03-10
Yesterday in Brussels, the European Parliament (EP) rejected proposals to phase out free CO2 pollution credits for industries covered by the EU's Emissions Trading System (EU ETS), even as the bloc plans to gradually replace the scheme with a border carbon tax to shield EU industries from "environmental dumping."

The European Commission (EC) is expected to unveil its proposal for a carbon border tax in June as part of a package of climate laws aimed at cutting the EU's CO2 emissions by 55 pct by 2030. (Source: European Commissions, euractive, 10 Mar., 2021)

More Low-Carbon Energy News EU Carbon Tax,  Border Carbon Tax,  EUETS,  Carbon Credits,  

EU ETS
Date: 2021-02-05
The price of carbon in Europe has risen to €38, a record high with prices adding more than 13 pct over the past two sessions as traders rushed to secure supplies of EU emissions allowances.

A 6.8 pct rise on Wednesday, February 4th followed a 6.5 pct jump in the previous session. The price of carbon has risen by 66 pct since early November, 2020. (Source: Various Media, FT, 3 Feb., 2021)

More Low-Carbon Energy News EU ETS,  Carbon Emissions,  arbon Price,  

UK Carbon Emissions
Date: 2020-12-16
In London, the UK Conservative government of PM Boris Johnson has confirmed the introduction of a national emissions trading scheme (UK ETS) to replace the EU system (EU ETS) when BREXIT comes into force on 1 Jan., 2021.

The UK ETS would immediately lower the current EU cap on greenhouse gases that businesses can emit by 5 pct and thus provide greater certainty about the decarbonisation trajectory over the long term and deliver a "robust carbon price signal" to spur business to invest in carbon abatement -- CCS.

The UK ETS would initially apply to electric power generation, aviation and other energy-intensive industries, and carbon pricing could be expanded across the economy, the paper showed.

Britain is aiming for net-zero carbon emissions by 2050 and recently increased its emissions reduction target from 57 to 68 pct for 2030. (Source: Various Media, ENDS Europe, Yahoo Finance UK, 14 Dec., 2020)

More Low-Carbon Energy News EU ETS,  UK Carbon Emissions,  Carbon Emissions,  

UK Department for Business, Energy and Industrial Strategy
Date: 2020-12-04
According to Fitch Ratings, the UK is increasingly likely to adopt a post-Brexit national emissions trading system (ETS) similar to the EU ETS.

The UK emissions trading scheme would be similar to the EU ETS but would apply a tighter emissions cap, higher fines than under the EU ETS and could lead to higher carbon prices -- £100 per tonne -- for the roughly 1,000 UK-based businesses currently covered by the EU ETS but will move to the new scheme, according to the UK Department for Business, Energy and Industrial Strategy (BEIS). (Source: UK Department for Business, Energy and Industrial Strategy, Fitch Ratings, Dec, 2020) Contact: BEIS, +44 0 20 7215 5000, enquiries@beis.gov.uk, www.gov.uk/government/organisations/department-for-business-energy-and-industrial-strategy

More Low-Carbon Energy News UK BEIS,  EU ETS,  Emission Trading,  Carbon Emissions ,  

EU,European Commission
Date: 2020-10-05
On Monday, the European Union (EU) Committee on Environment, Public Health and Food Safety Executive VP Frans Timmermans presented the EC plan to reduce EU greenhouse gas emissions by at least 55 pct by 2030 compared to 1990 levels.

Timmermans noted that although GHG emissions are not currently falling fast enough he underlined that becoming carbon neutral is both feasible and beneficial for the EU. He called for the European Parliament (EP) to confirm the proposed 55 pct 2030-target as the EU's new Nationally Determined Contribution under the Paris Climate Agreement, and to submit this to the UNFCCC by the end of this year. The EP is expected to vote next week on the EU Climate Law, which calls for 60 pct emission reductions in 2030. Timmermans also noted the EC would come up with proposals by June 2021 to revise key EU legislation such as the EU Emissions Trading System (EU ETS), energy efficiency and renewable energy policies and strengthening CO2 standards for road vehicles to enable the EU to reach a more ambitious target.

As previously reported this past March, the EC proposed climate legislation requiring the EU to become climate-neutral by 2050 as part of the European Green Deal. This follows the December 2019 EC decision to endorse the 2050 climate-neutrality objective. On 17 September, the Commission amended its proposal to incorporate a new 2030 emissions reduction target. (Source: European Commissions, PR, EU News Room, Oct., 2020) Contact: EU, www.europa.eu

More Low-Carbon Energy News Carbon Emissions,  Carbon Neutral,  European Commissions,  EU ETS,  Climate Change,  

Eueopean Union, IMO
Date: 2020-09-18
In Brussels, the European Parliament reports it has voted for the inclusion of CO2 emissions from maritime shipping in the EU Emissions Trading Scheme (EU ETS) and will begin negotiations with the 27-member trading bloc states on concrete legislation. Maritime transport is the only sector in which the EU has no specific obligations to reduce CO2 emissions.

The European Commission (EC) proposed that reporting obligations by the EU and the International Maritime Organisation (IMO) should be aligned. While MEBs agree, they noted that the IMO has made insufficient progress in reaching a global agreement on greenhouse gas (GHG) emissions. Parliamentarians have therefore asked the Commission to examine the environmental integrity of the measures decided by the IMO as well as the targets set under the Paris Agreement.

Although the Parliament demands that ships of 5000 gross registered tons or more should be included in the ETS, many parliamentarians still feel that this is not enough and are calling for shipping companies to reduce their annual average CO2 emissions per transport service for all their ships by at least 40 pct by 2030. (Source: EP, elecdrive, 17 Sept., 2020)Contact: International Maritime Organization (IMO), Stefan Micallef, Director of Marine Environment Division, +44 (0) 20 7735 7611, www.imo.org

More Low-Carbon Energy News IMO,  Maritime Emissions,  Carbon Emissions,  EUETS,  

EU ETS
Date: 2020-09-14
In Brussels, the European Commission (EC) is expected to propose the EU raise its Emissions Trading Scheme (EU ETS) target to cut emissions from 1990 levels from the present target of a 40 pct cut by 2030 to "at least 55 pct" by 2030 in order to meet the 27 member trading bloc's goal of net-zero emissions by 2050.

The new target requires individual EU member nation approval as well European Parliament approval. The commission is expected to propose legislation containing the ETS reforms by June 2021. (Source: European Commission, Arab News, 13 Sept., 2020)

More Low-Carbon Energy News EU ETS,  Carbon Emissions,  

EASAC, Biomass
Date: 2020-08-26
In Germany, the European Academies' Science Advisory Council (EASAC) is reportedly calling for EU legislators to introduce a new requirement that net carbon emissions from "biomass power stations be properly accounted for and declared under the Emissions Trading System (ETS)."

The European Commission is presently reforming the rules on monitoring and reporting for the ETS the period 2021-2030. The draft regulation requires that biomass complies with the Renewable Energy Directive Sustainability criteria to be considered carbon neutral. This is a critical point to ensure that biomass comes from sustainable managed forests, that it does not lead to a decrease to the forest carbon stock, and it doesn't damage biodiversity or soil and water quality.

The current EU ETS only accounts for smokestack emissions and rates the carbon emissions of biomass burning at zero. However, EASAC said in a statement that it "should not be possible to just assume that millions of tons of carbon coming out of a power station stack are 'zero'. The ETS should be reformed to link accounting to the real effects on CO2 levels in the atmosphere. This will require calculating the 'carbon payback period' for each biomass facility and its supply chain. Regulators need to know how long it will take until the initial perverse effects of biomass on climate are overcome and net reductions in atmospheric CO2 concentrations achieved', according to the release.

"The European Commission, in its recent biodiversity strategy, has recognised that sustainable bioenergy is a win-win solution for energy generation and a key tool to achieve carbon neutrality in 2050. EU member states, as shown in their national energy and climate plans, rely on efficient and sustainable bioenergy to decarbonise their energy mix," the release added. (Source: EASAC, Website, PR, Aug., 2020) Contact: EASAC, Professor Michael Norton, Environment Programme Director, info@easac.eu, +32 2550 2332 www.easac.eu

More Low-Carbon Energy News EU ETS news,  Biomass news,  Biomass Emissions news,  

Canadian Energy Research Institute
Date: 2020-08-19
A recent study from the Canadian Energy Research Institute (CERI) compared the province of British Columbia's $40 per tonne carbon tax and Alberta's Technology Innovation and Emissions Reduction (TIER) program taxing heavy emitters $30 a tonne, to the European emissions trading scheme (EU ETS) and Quebec's cap-and-trade agreement with California and noted that overall, the EU ETS policy was more effective at reducing greenhouse gas (GHG) emissions than the Carbon Tax policy or a Hybrid policy.

In keeping with the study findings, the CERI study proposed the following to lower emissions:

Both carbon tax and emissions trade systems have a great capacity to reduce GHG emissions; however, a level at which they are utilized is not adequate for significant change towards low carbon economies;

Strengthening existing and adding new carbon policies and actions, especially those that can deal with carbon leakage, is needed;

Current carbon prices in many jurisdictions remain insufficient to achieve the objectives of the Paris Agreement, even with extended carbon pricing policies in place to align with the specific GHG reduction targets;

Stronger complementary policies and actions are needed to achieve the total reductions in GHG emissions in a case of the BC carbon tax;

Lessons from ETS systems, especially California's cap-and-trade system, has revealed that the economy-wide approach can be more efficient than managing specific sectors differently;

Linkage of a cap-and-trade system with those in other jurisdictions (such as California's cap-and trade system linked with Quebec) could potentially reduce abatement costs, price volatility, and market power.

The Calgary-based Canadian Energy Research Institute is an independent, not-for-profit research establishment created through a partnership of industry, academia, and government in 1975. CERI aims to provide relevant, independent, objective economic research in energy and environmental issues to benefit business, government, academia and the public and to build bridges between scholarship and policy,combining the insights of scientific research, economic analysis, and practical experience. (Source: Canadian Energy Research Institute, PR, Western Standard, Aug., 2020) Contact: Canadian Energy Research Institute, (403) 282-1231, info@ceri.ca, www.ceri.ca

More Low-Carbon Energy News Canadian Energy Research Institute,  ETS,  Carbon Tax,  Carbon Emissions ,  

European Commission
Date: 2020-08-07
In Brussels, the European Commission (EC) is reporting the planned link-up of the EU and Swiss carbon markets is slated to be operational from September 21, this year. The two registries are not yet connected by a permanent link, but will use a provisional system to launch trading this year.

The EU carbon market is the 28-member trading bloc's flagship policy for cutting greenhouse gas emissions, which it does by forcing power plants, factories and airlines to buy permits to cover some of the pollution they emit.

The EU carbon market covered just shy of 1.6 billion tonnes of carbon dioxide equivalent (CO2e) last year. The Swiss carbon market coveredless than 5 million tonnes of CO2e from industrial facilities in 2019. (Source: European Commission, europa.eu, Reuters, Aug., 2020)

More Low-Carbon Energy News Carbon Market,  EU ETS,  Carbon Trading,  

Maritime Emissions.Marine Emissions
Date: 2020-07-13
"The IMO (International Marine Organization) wants to cut greenhouse gas emissions in half by 2050. That means that the mainstream fuels we use today will be obsolete. We're working with inventors to help them develop new fuels. That's an exciting challenge to work with, and we can use our involvement to help customers prepare and know where to invest.

"It's our job to make sure our customers are aware of these complexities. We need to use our knowledge to help them understand the impact of their shipping activities. The best way to do this is through a face-to-face dialogue. Then I can get a good understanding of what they are looking for and how it plays into their business model, and I can do my best to guide them based on the (emissions) data we can supply." -- Poul Woodall, IMO Director of Environment and Sustainability, Vice Chair, Green Ship of the Future

"Cutting (maritime shipping) emissions to net zero by 2050 in Europe is ambitious and challenging. This is why each sector needs to contribute, also shipping. The EU ETS is the right instrument for this, but we must do it properly. We want a debate with all the relevant stakeholders and an impact assessment outlining the possible consequences by June 2021. Then we can make our final decision. Shipping companies that have already heavily invested in reducing their emissions over the last decade must not be penalized. Our goal is to reduce CO2 emissions in shipping by 50 percent by 2030, compared to 2008 levels." -- Pernille Weiss, EU MEP EU Today, 12 July, 2020 Contact: International Maritime Organization (IMO), Stefan Micallef, Director of Marine Environment Division, +44 (0) 20 7735 7611, www.imo.org

More Low-Carbon Energy News Maritime Emissions,  IMO,  EU ETS,  

Shipping Emissions
Date: 2020-07-08
In Brussels, the European People's Party (EPP), the largest political group in the European Parliament, is calling for a 50 pct cut in shipping emissions by integrating them into the existing EU Emissions Trading System (EU ETS).

International shipping represents around 13 pct of the EU greenhouse gas (GHG) emissions from the transport sector. If left undealt with, CO2 maritime emissions could increase by 50 to 250 pct by 2050, according to the EPP.

The European Commission plans to present new rules addressing the emission cuts in shipping by the end of 2020 or the beginning of 2021. (Source: EPP, Financial Mirror, 7 July, 2020)

More Low-Carbon Energy News Shipping Emissions,  EU ETS,  GHGs,  CO2,  

Carbon Market, EU ETS
Date: 2020-06-03
With the fast approaching Brexit finalization, the UK is floating a UK Emissions Trading System (ETS) to replace the European Union's system (EU ETS) from which it will be excluding at the end of the year.

The British ETS would have a £15 per tonne of CO2 fixed auction reserve price, including a cost containment mechanism to prevent price spikes.

The roughly 1,000 UK factories and plants presently covered under the EU ETS will be covered by the UK system, The British government also noted it would consider a mutually beneficial a link between a UK ETS and the EU ETS . (Source: Financial Post, Various Media, Reuters, June, 2020)

More Low-Carbon Energy News Carbon Market,  EU ETS,  Carbon Trading,  

CORSIA, ICAO
Date: 2020-06-03
The Montreal-headquartered U.N International Civil Aviation Organization (ICAO) reports its planned scheme for offsetting emissions from international flights will supplement, not replace, the European Union Emissions Trading System (EU ETS).

Under the EU ETS, airline flights between European countries are required to purchase permits to cover some emissions from these trips. ICAO wants the EU to remove these flights from its carbon market so that CORSIA can be the only market-based measure tackling international aviation emissions.

With the UN planning a 2021 launch of CORSIA, its global scheme to help airlines offset their carbon emissions, some EU lawmakers and environmental groups want assurances that the European Commission will not remove aviation from the EU ETS.

CORSIA plans to use a system of offsetting to cap emissions from international flights at 2020 levels. From 2021, airlines would be required to buy carbon offset credits to cover any emissions above the 2020 baseline. Critics say this would allow aviation emissions to keep rising, if airlines bought enough offset credits to cover the increase. (Source: ICAO, Pineville Voice, 2 June, 2020))Contact: ICAO, Secretary General Fang Liu, 514-954-8219, 514-954-6077 -- fax, icaohq@icao.int, www.icao.int; CORSIA, www.icao.int/environmental-protection/CORSIA/Pages/default.aspx

More Low-Carbon Energy News Aviation Emissions,  ICAO,  CORSIA,  

European Commission
Date: 2020-05-20
The European Commission (EC) is reporting its EU Emissions Trading System (EU ETS) platforms could start hosting permit sales online from 2021.

Auctions will be held on behalf of 25 EU member states plus Norway, Iceland and Liechtenstein. The auctions take place on the European Energy Exchange (EEX) platform. (Source: EUObserver, Reuters 18 May, 2020)

More Low-Carbon Energy News EU ETS,  

Carbon Price,Low Carbon Energy
Date: 2020-05-01
According to a recently circulated paper, French authorities consider present COVID-19 and related market conditions make a clear case for "mechanisms ensuring that these energies remain consistently above a certain floor price" from the perspective of both consumers and investors.

Such a mechanism could take the form of "a carbon price floor" that could be implemented either through the EU's emissions trading scheme (EUETS)or the energy taxation directive, which is up for review as part of the European Green Deal. The paper notes that structurally low electricity prices hinder investments in new low-carbon power generation capacity needed to meet the EU's decarbonisation goals.

Download the French position paper HERE. (Source: euractive, 27 April, 2020)

More Low-Carbon Energy News EUETS,  Carbon Price,  Carbon Tax,  EU ETS,  

ICE Global Carbon
Date: 2020-04-24
Exchange operator ICE reports the launch of a new carbon market index, joining a growing number of companies seeking to track allowance prices in the world's major greenhouse gas emissions trading systems.

The new ICE Global Carbon Futures Index is made up of prices from the EU ETS, the California-Quebec Market and RGGI markets which together represent some of the largest regional economies in the world. To date, 46 nations and more than 30 cities, states and regions have imposed a price -- carbon tax -- on carbon emissions.(Source: ICE, 23 April, 2020) Contact: ICE Global Carbon, www.theice.com

More Low-Carbon Energy News ICE Global Carbon,  Carbon Market,  

EU ETS
Date: 2020-04-08
"This (COVID-19 pandemic) is a perfect storm for Europe's carbon market, and it may well lead to some challenging questions about its role in Europe's decarbonisation strategy once the COVID-19 crisis has passed." -- Coralie Laurencin, IHS Markit Dir. (Note: Europe's carbon price has dropped 40 pct since early March when they were still trading at roughly €24 ($26) per metric ton to €16-18 per metric ton. In 2019 the high was €29 per metric ton.)

"All of society, from consumers, to businesses, to governments, recognised the need to accelerate global efforts to reduce greenhouse gas emissions," -- Ben van Beurden, CEO,Shell Oil, April, 2020

More Low-Carbon Energy News Carbon Market,  EU ETS,  

S&P Dow Jones
Date: 2020-03-16
S&P Dow Jones Indices is reporting the launch of the S&P GSCI Carbon Emission Allowances (EUA) EUR. The new index provides investors with a reliable and publicly available investment performance benchmark for European Carbon Emission Allowances -- EU emissions trading system (EU ETS), a market-based cap-and-trade method developed to reduce global greenhouse gas emissions by companies. The S&P GSCI Carbon Emission Allowances (EUA) EUR index is based on the ICE EUA Futures Contract. (Source: S&P Dow Jones, STL News, Mar.,2020)

More Low-Carbon Energy News S&P Dow Jones ,  UE ETS,  Carbon Emissions,  

EU,EC,EU ETS
Date: 2020-01-17
In Brussels, the European Commission (EC) is reporting a proposal to reduce the number of industries eligible for compensation for the costs incurred from their inclusion in the EU's carbon market Emissions Trading Scheme (EU ETS). Under the proposal, reparations would be "conditional upon decarbonisation efforts by the companies concerned."

The industries affected by the proposal include: Iron ore mining; man-made fiber manufacturing; copper production; preparation and spinning of textile fibers; organic basic chemicals manufacturing; nitrogen compounds and fertilizer manufacturing; and mining of chemical and fertilizer minerals.

In a statement, the European Commission defended the The new state aid guidelines are inline with the European Green Deal which aims to cut global warming emissions, according to the EC release. (Source: EC, EURACTIV, 16 Jan., 2020)

More Low-Carbon Energy News Carbon Emissions,  EU ETS,  EC,  EU,  

EU,COP25
Date: 2019-12-30
Politico is reporting European countries are considering the imposition of carbon tariffs on import products from the U.S. and other countries with lack luster commitments to dealing with carbon emissions and climate change.

According to Politico, potential carbon tariffs were discussed at the United Nations COP25 climate conference in Madrid where it was thought inevitable that governments will turn to trade barriers in the effort to fight climate change.

The European Union currently imposes a €25 per metric ton carbon tax on oil refineries, steelmakers and paper producers and other major carbon emitters. (Source: Vestnik, Politico, 15 Dec., 2019)

More Low-Carbon Energy News COP25,  EU,  EU ETS,  Carbon Emissions,  Carbon Tax,  

EURIMA
Date: 2019-11-29
The European Commission is assessing whether to extend the EU Emissions Trading System (EU ETS) to cover the emissions associated with the heating and cooling of buildings. This paper points out several reasons why this would not be the best approach to deliver a highly energy-efficient and decarbonised building stock by 2050.

Buildings are the EU’s biggest CO2 emitter. Our homes, offices and buildings are the EU’s biggest CO2emitters, as well as its single largest energy user. Decreasing and decarbonising the energy consumption to heat, cool and use buildings is crucial for the transition to a climate-neutral Europe by 2050 at the latest. Since most of the buildings that we will occupy in 2050 are already built, the main challenge is to renovate these 210 million existing buildings to make them less energy-hungry. At the current rate of renovation, it would take another century to achieve a decarbonised building stock, instead of the targeted30 years. Further inaction risks the EU missing its climate objectives by up to 400 million tonnes of CO21.Around 50 million people still live in energy poverty. Deep renovation of their homes would lower their energy bills and make their houses more comfortable and healthy. Well-insulated buildings moreover offer the flexibility to receive energy when it is available, thereby allowing the effective integration of renewables in the energy system during the entire year

.Integrating buildings in the EU ETS is complex and time-consuming. Urgent action on buildings is vital to overcome the climate and social crises facing Europe today. Integrating the building sector in the EU ETS is complex and likely to take at least several years. That is time we do not have, and which diverts attention from more effective short-term measures. The EU should instead prioritize a Green Deal for housing to unlock vast investments for building renovations, while creating local jobs and more energy-efficient and affordable housing.

What is the EU ETS? The EUETS sets a cap on the total amount of greenhouse gases that can be emitted by installations from the power, industry and aviation sectors. The cap is reduced over time so that emissions go down. Within the cap, companies receive or buy emission allowances which they can trade with each other, thereby creating a carbon price. The building sector is already covered by a cap on how much greenhouse gases can be emitted as part of the Effort Sharing Regulation; the EU’s other climate legislation targeting sectors not included in the EU ETS.

Carbon pricing does not deliver more affordable, energy-efficient homes. According to the International Energy Agency2, most of the energy efficiency potential is available at a negative cost. This means that these efficiency measures already pay for themselves, even in the absence of a carbon price. The reasons why these measures, such as energy renovation, are not taken are usually not economic in nature, but rather the result of market-barriers and -imperfections. In the case of the building sector, these barriers include split incentives between those making investments (i.e. home-owners) and those paying energy bills (i.e. tenants), the inability to come up with high upfront costs and a lack of information on renovation opportunities and financing options. Including the building sector in the EU ETS would do nothing to overcome these barriers to make buildings more energy-efficient. Even worse, the introduction of a carbon price for the heating and cooling of buildings could lead to higher energy bills for tenants or homeowners who are not able to, or cannot afford to, renovate their homes.

Governments should remain responsible for the built environment. Extending the EU ETS to buildings would mean that governments are no longer accountable for introducing measures to decarbonise the building stock under the Effort Sharing legislation. Under the Effort Sharing Regulation, each Member State has annual climate targets that it needs to meet. By integrating buildings in the EU ETS, the sector would be taken out of the Effort Sharing Regulation, putting the responsibility of climate action instead on heating fuel suppliers. The integration of the building sector in the EU ETS could lead to the dismantling or shying away from more effective EU and national energy efficiency legislation, under the pretext that this would undermine the functioning of the carbon market. This would be dangerous as the decarbonisation of the building stock requires dedicated policies beyond a carbon price. It is up to governments to put in place programmes to accelerate renovation, to introduce minimum energy performance standards for buildings and to prioritize measures to alleviate energy poverty. These actions will not happen through the EU ETS, but by policymakers taking ownership of the transition to a climate-neutral built environment.

Green Deal for housing should be a key priority for Europe. Without urgent and accelerated action to renovate up to 97% of the European building stock by 2050, it will be impossible to meet the EU’s climate objectives. Fortunately, buildings’ operational emissions can be cut by 100%, mostly by using already commercially available solutions such as insulation. Including the building sector in the EU ETS distracts from taking effective measures to overcome the main barriers hampering the renovation of the EU building stock and the alleviation of energy poverty. The EU instead needs to put in place an enabling framework to ensure that the worst energy performing buildings are phased out over time, to guarantee quality homes for people and clear a pathway to climate-neutrality. The European Green Deal presents a perfect opportunity to deliver on comfortable, affordable and energy-efficient housing. This Green Deal can help unlock 130 billion euro per year to fill the investment gap for energy-efficient buildings3. Over 2 million jobs in Europe could be created throughsuch investments in energy efficiency –in particular in the deep renovation of buildings4. (Source:EURIMA - European Insulation Manufacturers Association, Nov., 2019) Contact: EURIMA, Femke de Jong, femke.dejong@eurima.org

More Low-Carbon Energy News Energy Efficiency news,  Insulation news,  

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EU ETS
Date: 2019-11-18
In Bern the Swiss Federal Council is reporting approval of revisions to the country's Reduction of CO2 Emissions ordinance with the European Union Emissions Trading Scheme (EU ETS). The amended Ordinance was approved on November 13 and will enter into force on January 1, 2020.

The Swiss-EU agreement regulates the mutual recognition of emissions rights from the two ETS systems, each with its own legal basis. From January 2020, emissions from civil aviation and fossil fuel power stations will be included in the Swiss ETS, as is currently the case in the EU.

The EU ETS operates in 31 countries -- the EU's member states, plus Iceland, Liechtenstein, and Norway. A single, EU-wide cap applies, and auctioning is the default method for allocating allowances. The Swiss ETS is also based on the cap-and-trade principle.(Source: Swiss Federal Council, SwissInfo, TaxNews.com, 15 Nov., 2019) Contact: Swiss Federal Council, www.admin.ch/gov/en/start/federal-council.html

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German Carbon Tax
Date: 2019-10-02
In Berlin, the German Finance Minister Olaf Scholz reports the government expects its €10 per ton CO2 pricing starting in 2021 in the buildings and transport sectors will bring in €18.8 billion by 2023 for its Climate Action Package, according to the German business publication Handelsblatt.

The Climate Action Package is an economic plan for the country's Energy and Climate Fund, which is expected to grow from €6.1 billion this year to €11.75 billion in 2023. Revenues from the European trade of CO2 allowances in energy and industry (EU ETS) are expected to raise an additional €14 billion. The Climate Action Package is intended to put the country on track to meet its 2030 climate targets. (Source: Handelsblatt, Clean Energy Wire, Other Media, 1 Oct., 2019) Contact: German Finance Minister, Olaf Scholz, www.bundesfinanzministerium.de

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IHS Markit, Climate Finance Partners
Date: 2019-09-27
London, UK-headquartered information and analytics provider IHS Markit reports the launch of its Global Carbon Index, the first benchmark for the global price of carbon credits.

The Index tracks the performance of the largest, most liquid and most accessible tradable carbon markets -- the European Union Emission Trading System (EU ETS), the California Cap-and-Trade Program, and the Regional Greenhouse Gas Initiative (RGGI). The index is calculated using OPIS data and carbon credit futures pricing in those markets.

The IHS Markit Global Carbon Index was developed in consultation with Climate Finance Partners, a specialist in climate finance. IHS Markit is also well known for its daily OPIS Carbon Market Report, national carbon policies database and for developing industry standard methodologies for greenhouse gas accounting and disclosures. Its research and expertise on carbon policy impact, low-carbon and cleantech technologies and carbon risk management guide companies in energy, petrochemical, automotive, shipping, agriculture and other sectors critical to the global economy. (Source: IHS Markit , 25 Sept., 2019) Contact: IHS Markit, www.ihsmarkit.com

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Carbon Tax, German Carbon Tax
Date: 2019-09-23
In Berlin, German chancellor Angela Merkel's coalition government has reportedly agreed on a carbon price -- tax to meet its targeted 55 pct cut in carbon emissions by 2030. The price -- tax -- for CO2 emissions in transport and buildings is expected to come into force in 2021 at an estimated cost of €54 billion ($60 billion) by 2023.

The German system will be based on a trade in emissions certificates under the EU's emissions trading scheme (EU ETS). Germany is on course to miss its 2020 target of reducing 1990 greenhouse gas emissions by 40 pct, according to the Times of Aman report. (Source: Times of Oman, 22 Sept., 2019)

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Carbon Tax
Date: 2019-09-11
In the UK, the Herald Media is reporting PM Boris Johnson's government is preparing to impose a tax of £16 per ton of carbon, if the country exits the European Union without a deal on the 31st of October.

This tax would come into effect from the 4th of November, and would apply to all stationary installations that are currently subject to the EU ETS.

If the UK were to leave the EU without a deal, the country will also not be subject to the 28-member European Union's Emissions Trade System (EU ETS) which is key to the EU and its member nations meeting emission reduction obligations.

While UK businesses currently pay a carbon tax rate of £26 under the EU ETS, a "No Deal Brexit" carbon tax would result in a £10 cut in the carbon tax rate and would be profitable for UK industries. (Source: Herald Media, 10 Sept., 2019)

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Switzerland
Date: 2019-08-30
In Bern, the government of Switzerland reports it will hike its existing target of cutting it greenhouse gases by 70-85 pct by 2050 to 100 pct carbon neutrality by the same year.

The non-EU member sources about 60 pct of its electricity from hydropower, 33 pct from nuclear and the rest from fossil fuels. Of the total, fossil fuels still make up about 63 pct of which roughly 10 pct is from aviation -- the global average aviation emissions is between 2 and 3 pct. Switzerland's domestic carbon trading scheme includes aviation emissions in the same way the EU ETS system does and the two are linked. (Source: Various Media, EURACTIV, 29 Aug., 2019)

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Carbon Tax
Date: 2019-06-05
In Amsterdam, the Government of the Netherlands Prime Minister Mark Rutte has proposed legislation setting a minimum price of €12.30 per tonne of CO2 emissions by electricity producers. If approved by parliament, the law would come into force in Jan., 2020, rising to €31.90 in 2030. The Dutch carbon tax would supplement the European Union's Emissions Trading System (ETS). (Source: Gov. of the Netherlands, Reuters, June, 2019)

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British Steel,Bexit
Date: 2019-05-06
Following up on our 15th April report on the European Union's decision to suspend Britsh Steel and other UK firms' access to free carbon permits under the EU ETS until a Brexit withdrawal deal is ratified, the UK government reports it has loaned British Steel £120 million to meet its obligations under EU ETS rules allowing industrial polluters to use carbon credits to pay for the previous year's emissions, or trade them to raise money.

Each free permit gives a firm the right to emit a tonne (1,000kg) of CO2. British Steel claims that it is discussing the impact of Brexit on its business with ministers and officials from the Department for Business, Energy and Industrial Strategy (DBEIS) and is in talks with Department for Business about financial assistance. British Steel has until 30 April to comply with EU emission rules. (Source: British Steel, Insider Media, 2 May 2019

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EU ETS
Date: 2019-04-15
The BBC is reporting the European Union's decision to suspend UK firms' access to free carbon permits under the EU ETS until a Brexit withdrawal deal is ratified is behind British Steel's decision to seek a £100 million to meet EU ETS rules allowing industrial polluters to use carbon credits to pay for the previous year's emissions, or trade them to raise money.

Each free permit gives a firm the right to emit a tonne (1,000kg) of CO2. British Steel claims that it is discussing the impact of Brexit on its business with ministers and officials from the Department for Business, Energy and Industrial Strategy (DBEIS) and is in talks with Department for Business about financial assistance. British Steel has until 30 April to comply with EU emission rules. (Source: BBC, Steel Times, 14 April, 2019)

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UK Department for Business, Energy & Industrial Strategy
Date: 2019-04-12
In London, the attached UK Department for Business, Energy & Industrial Strategy's (BEIS) short-term traded carbon values for UK public policy appraisal are used for determining the impact of government policies on emissions in the traded sector -- those sectors covered by the EU Emissions Trading System (EU ETS). Short-term values quoted in this paper correspond to the period up to 2030 and long-term values correspond to the period post-2030.

HERE. (Source: UK Department for Business, Energy & Industrial Strategy, April, 2019) Contact: Gov of UK, Department for Business, Energy & Industrial Strategy, https://www.gov.uk/government/organisations/department-for-business-energy-and-industrial-strategy

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Carbon Marget, EU ETS
Date: 2019-03-08
Meeting in Bern, the Swiss cabinet reports approval of a deal that would link the Swiss and the European Union carbon emissions trading systems (EU ETS). With the linking of the systems the most polluting category of Swiss companies will be able to access a larger market and benefit from the same conditions as their European counterparts, beginning in 2020.

In Switzerland, 54 companies in sectors like cement, chemicals, pharmaceuticals, refineries, paper, heating or steel are linked to the Swiss emissions trading system. In Europe, there are around 11,000 firms that offset their emissions under the EU ETS.

In Switzerland, companies have the right to emit a certain amount of carbon dioxide (CO2) into the atmosphere for free. Those that reduce their CO2 emissions and do not use all their quota can sell them to others.

Companies that do not participate in the emissions trading scheme are subject to a CO2 tax which can be refunded if they undertake to reduce their emissions. The coupling of the Swiss and EU emission trading systems will enter into force in 2020. It is part of the changes associated with the revision of the Swiss CO2 law. The agreement is for an indefinite duration and can be terminated with six months' notice by both parties.(Source: swissinfo.ch, 7 Mar., 2019)

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EU ETS
Date: 2019-03-01
In London, the UK Energy and Clean Growth Minister Hon. Claire Perry is confirming the government is working on plans to develop a "post Brexit" domestic emission trading scheme [ETS) that could link with the existing EU ETS from January 2021. The UK government is hoping to leave the EU with a Withdrawal Agreement that allows it to remain in the bloc's ETS through to the end of the current trading period at the close of 2020 at which time it would establish a domestic ETS that could integrate with the EU scheme,

According to the Minister, the EU would be keen to integrate the two carbon markets, despite the fact formal talks on the issue will not start until the UK has resolved the current parliamentary stand-off over the Withdrawal Agreement. The UK is one of the largest participants in the continent-wide EU ETS which has been widely credited with helping to drive down emissions across the 28-member bloc.(Source: UK Energy and Clean Growth Minstry, BusinessGreen, 28 Feb., 2019) Contact: U.K. Energy and Clean Growth Minister, www.gov.uk/government/ministers/minister-of-state-minister-for-energy

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International Civil Aviation Organization
Date: 2019-01-30
As we previously reported, the International Civil Aviation Organization (ICAO) is projecting aviation carbon emission could grow seven-fold over the next 30 years -- 70 pct higher in 2020 than they were in 2005. ICAO forecasts that by 2050 emissions could have grown by between 300 pct and 700 pct.

Until recently, aviation had not been central to the climate change debate. Enjoying special status, aviation and shipping were excluded from the landmark Kyoto and Paris climate-change agreements. Urged to produce its own solutions, ICAO introduced a marginally successful global scheme in 2016 and the EU launched its Emissions Trading Scheme (EU ETS) that serve the EU member countries.

A recent EC study of aircraft emissions notes that modern aircraft are 70 pct more fuel-efficient than 40 years ago and that while airlines with the highest load factors produce significantly less emissions per passenger than less successful ones, aviation still consumes 5 million bpd of oil and contributes about 2.5 pct of global emissions and that that 85 pct of carbon offset projects it had evaluated had failed to reduce emissions. (Source: International Civil Aviation Organisation, Irish Times, 29 Jan., 2019) Contact: ICAO, +52 55 52 50 3211, icaonacc@icao.int, www.icao.int

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EU ETS
Date: 2018-12-21
In Brussels, the European Commission (EC) reports that as of January 1, 2019, it has temporarily suspended EU ETS emissions trading system processes related to Britain's convoluted and contentious BREXIT is concluded. Accordingly, the UK Britain will be unable to auction carbon permits, allocate them for free to operators, or exchange international credits for as long as the suspension remains in place, the EC added in a statement.

From January, any carbon permits issued by Britain will have to be identified by a country code ("marked") but transfers of permits already in circulation in and out of accounts held by UK operators will not be affected by the suspension. If BREXIT is ratified the suspension will be lifted, the EC added. (Source: European Commission, Reuters, 20 Dec., 2018)

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EU ETS
Date: 2018-11-14
In Brussels, Reuters is reporting that without a deal to leave the EU , Britain, Europe's second largest emitter, will be excluded from the European Union Emissions Trading System (EU ETS) and all other legislation to help limit the impact of climate change. The EC could also temporarily suspend permit auctions and free allocations linked to the UK market in an effort to minimize the worst disruption in key areas in case of a no-deal Brexit.

In October, Britain said that if there is a Brexit deal, the country plans to remain in the ETS until at least to the end of its third trading phase running from 2013-2020. (Source: Reuters, Nov., 2018)

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ICAO,European Commission
Date: 2018-11-07
According to European Commission (EC) and the International Civil Aviation Organization (ICAO) data, by 2020, global international aviation emissions are projected to be around 70 pct higher than in 2005 and could grow by a further 300-700 pct by 2050.

Under the EU ETS, all airlines operating in Europe are required to monitor, report and verify their emissions, and to surrender allowances against those emissions. o date, the EU ETS is credited with reducing aviation sector's carbon footprint by more than 17 million tpy with compliance covering over 99.5 pct of aviation emissions.

The ICAO's Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) aims to stabilize CO2 emissions at 2020 levels by requiring airlines to offset the growth of their emissions after 2020. During the period 2021-2035, and based on expected participation, the scheme is estimated to offset around 80 pct of the emissions above 2020 levels. (Source: ICAO, AgriLand, 5 Nov., 2018) Contact: ICAO, +52 55 52 50 3211, icaonacc@icao.int, www.icao.int

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EU ETS, Carbon Tax
Date: 2018-10-31
Bloomberg is reporting the Exchequer's (U.K Treasury Department) annual budget is proposing imposition of a £16 ($20 +-) per ton tax on carbon emissions if Brexit talks fail and the UK is excluded from the EU Emissions Trading System (EU ETS), early in 2019.

Bloomberg notes that UK fossil fuel burning power producers presently pay an £18 per ton "floor price" for CO2 emissions PLUS almost £15 per ton for EU ETS carbon allowances for an estimated total of £33 per ton of carbon emissions. If the UK exits the EU without a deal, emitters will pay the £16 per ton under a planned Carbon Emissions Tax to replace the EU ETS carbon-market portion of their emissions costs, plus the floor price which would remain unchanged, according to the Exchequer proposal. (Source: UK Treasury Dept, Bloomberg, Others, 29 Oct., 2018) Contact: Exchequer, www.gov.uk/government/ministers/chancellor-of-the-exchequer

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