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Parliament moves to boost carbon price


31 Jan 2012


Climate & Environment

The European Parliament has today sent a strong signal that the price of carbon emissions must be raised by fixing the Emissions Trading System (ETS) - one of the EU's key laws on climate change.

The Parliament's Environment Committee voted in favour of withholding carbon allowances in the ETS - a move that would increase the carbon price if it was adopted.

The economic crisis has reduced industrial production and therefore emissions, flooding the carbon market with free emission allowances and causing the price to collapse.

"It is good to see the Parliament finally recognise that the economic crisis has severely compromised the efficiency of the ETS to reduce emissions. It is even better to see the Parliament propose solutions to fix it!" Rémi Gruet, EWEA's senior climate advisor said.

"These measures must now be urgently implemented. Global competition in renewable energy technologies is getting fiercer and climate signals are one more message to investors that we should build on our existing technological lead. We call on MEPs to support the same line as the Environment Committee in the final vote in March," Gruet said.

Also this week, the European Commission published a paper analysing the impact on individual EU countries of a move to a 30% carbon cutting target by 2020.  The paper concludes that lower income EU countries could benefit the most from moving to 30% mainly by increasing national revenue from the ETS by as much as 80%.

"This long awaited report shows that a high carbon price can be beneficial for all EU countries, allaying fears that lower income countries would have less to gain from a move to 30%. We also urge Member States to support the Commission in its efforts to fix the ETS," Gruet said.

For more information contact:

Julian Scola, EWEA

+32 2 213 18 22

EWEA is the voice of the wind industry, actively promoting wind power in Europe and worldwide. It has over 700 members from almost 60 countries, including wind turbine manufacturers with a leading share of the world wind power market, plus component suppliers, research institutes, national wind and renewables associations, developers, contractors, electricity providers, finance and insurance companies, and consultants. This combined strength makes EWEA the world's largest and most powerful wind energy network.


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