| The first two trading periods of the European Union’s Emission Trading System (EU ETS) were marked by a low and volatile carbon price, which failed to incentivise investment in low-carbon technologies and sufficient cuts in CO2 emissions. With the aim of curing the Emission Unit Allowance (EUA) price, the European Commission (EC) submitted a reform proposal, the so-called Market Stability Reserve.
Bellona views the EU ETS as a key instrument to attain the EU’s climate change objectives cost-effectively and therefore calls for its comprehensive structural reform to ensure it sends a strong price signal to investors and places us on the right track to attaining a low-carbon economy...............................................Full Article: Source |