Tagesspiegel on EU climate policy
The Tagesspiegel reports on the EU commission’s proposal for a market stability reserve – and includes the MCC’s take on it.
08.08.2014
Ottmar Edenhofer, director of the Mercator Research Institute on Global Commons and Climate Change (MCC) and Chief Economist of the Potsdam Institute for Climate Impact Research (PIK) does not expect the EU commission’s proposal for a market stability reserve to lead to rising prices in emissions trading as it is hoped for. “The allowances are only party and only temporarily withdrawn from circulation”, he told the Tagesspiegel. “But investors have already priced in that also in the future there will be a too large supply of allowances.”
In a new study published in the journal “Energy Policy” and which is citied by the Tagesspiegel Edenhofer and MCC researcher Nicolas Koch discovered that neither the recession nor the expansion of renewable energies — as often assumed — are the main driver of the massive price drop in the emission allowances of the European Emissions Trading System (EU ETS). Instead, they account for at most 10 percent of the decline in prices.
You can access the online version of the Tagesspiegel article here.
