New emission ambitions from EU countries

Wednesday, a group of nine EU countries announced, that they are interested in a pan-European carbon price floor.

The annual United Nations climate change conference is underway, and this year, the event takes place in the Polish city of Katowice. As always, the conference is used for a lot of political positioning, as well as suggestions and proposals from some of the more or less important participants of the climate change debate. This year has been no exception, and yesterday, several of the EU member nations took the field in the debate.

A group of nine EU member states made an official statement Wednesday night, that the EU should work on introducing a minimum price on carbon emission, a so-called carbon price floor, which should complement the current quota market, the ETS. This according to energy news site Montel. The nine countries are Denmark, Sweden, Finland, France, the UK, the Netherlands, Portugal, Ireland and Italy.

The statement comes following months of warm-up and informal talks between the energy ministers of the EU countries. According to the statement of the nine countries’ energy ministers, the pan-European carbon price floor would send a “clear long-term signal” to incentivize investors to focus on environmentally friendly energy sources.

In their statement, the nine energy ministers advocated for the suggestion by arguing, that the last years’ reforms of the ETS quota market has been “a step in the right direction”, but that the carbon price is still sometime too low or too volatile to trigger effective decarbonization. The UK has already started up a national carbon price floor, while the Netherlands and France are working on implementing similar schemes.