Spiegel Online on carbon pricing

The idea of the MCC to connect carbon pricing with public finance is well received in the media. Articles are published by Spiegel Online and dpa-AFX.

[Translate to EN:] Foto: shutterstock

26.05.2014

Ottmar Edenhofer, director at the Mercator Research Institute on Global Commons and Climate Change (MCC) advocates for a reform of the European emissions trading system (EU ETS). Spiegel Online reports on an idea that was presented at the MCC’s Public Finance Workshop in Berlin. Especially economically troubled countries of southern Europe could could increase their revenues by billions.

dpa-AFX reports on it, too. The news agency writes: “According to the MCC calculation, precondition for the additional revenues are three reform steps for carbon trading in the EU. The current price of only about 5 euros per ton would have to be raised to more than 20 euros. Furthermore, other economic sector such as transport and buildings would have to pay for their emissions, exceptions would be very rare. And finally, the MCC argues for auctioning of 80 percent of the allowances instead of the current 40 percent.”

 

Interviewed by Spiegel Online Edenhofer says: „Emission trading per se is a good idea but it doesn’t work in its current stage.” With the reforms, however, one could “catch two bird with one stone”, says Edenhofer who is also chief economist of the Potsdam Institute for Climate Impact research (PIK). “It would make sense for economically troubled countries of southern Europe as well as for the climate in Europe.” He thinks the idea is political enforceable, too. “In my opinion, in the middle run there are definitely chances for a respectively reform of the European trading system.” Thus, the governments could in return lower the taxes on capital and labor and in doing so attenuate any cost increase.

You can find the coverage of Spiegel Online here.

You can find the coverage of dpa-AFX here.