Deutschlandfunk on emissions
In a radio interview MCC director Ottmar Edenhofer explains – among other things – why there has not been any reaction to the backloading at the European trading system.
[Translate to EN:] Foto: Tatiana Grozetskaya/Shutterstock
Within the trading system that was founded by the EU in 2005 the price has reached knock-down level: With just above 5 euros per ton of CO2 the economic incentive to cut down on this climate killer is rather weak. One reason is that policy makers have discouraged investors by their different announcements, Ottmar Edenhofer, director at the Mercator Research Institute on Global Commons and Climate Change (MCC) said.
“A minimum price as well as a price limit would be very important from my point of view”, Edenhofer said in an interview with Deutschlandfunk. Backloading, the intentional shortage of allowances, was already priced in by investors. “The market could be revived by policy makers sending a clear message to the investors that the price has to go up in the future.”
You can find the Deutschlandfunk’s audio file here.
You can find the Deutschlandfunk’s web article here.
