Robert Jeszke in an interview for Biznes Alert

Robert Jeszke in an interview for Biznes Alert

Robert Jeszke in an interview for Biznes Alert

On June 15, 2021 – Robert Jeszke – coordinator of the LIFE Climate CAKE PL and LIFE VIIEW 2050 project gave an interview for Biznes Alert entitled “Fluctuating prices of CO2 allowances make investments in reduction harder”

We cordially invite you to read the interview of Robert Jeszke for Biznes Alert, where he had the opportunity to present his opinion on topics related to the prices of CO2 allowances and the emission trading system (ETS) and future planned changes. One of the main topics discussed was an attempt to explain the surge in prices of CO2 emission allowances and possible concerns about speculation on the EUA market, what kind of instrument is the ETS and what changes are planned in it, e.g. in the scope of including the transport and building  sector in the ETS system. Additionally, various elements related to the planned announcement by the European Commission of the new legislative package “Fit for 55%” (in July this year), which is going to be of key importance for achieving EU climate neutrality, were discussed. The interview also referred to the results of CAKE analyzes relating to the prepared price forecasts for EUA emission allowances.

Below you can find are some quotes from the interview:

“In case of the EU ETS, which according to declarations remains the main climate policy tool of the EU, the goal has been to maintain the benefits of the market mechanism, and at the same time to continue to “improve it” to make sure the allowances prices ensure that the mechanism does work as an incentive to lower the emissions. This is why the mechanisms for regulating the supply (backloading, MSR) have been and are being introduced, and why ideas for directly controlling the prices have appeared.”

“It should be pointed out that the price of EUR 76 by 2030 we have estimated at the KOBiZE was an average price. Depending on the reduction targets and the arrangements in the EU ETS, and as part of the general 55 percent reduction target in the EU for 2030, one can expect that the reduction targets in 2030 may reach an even higher price, e.g. EU 100. One should also add that the CAKE calculations did not include such additional factors as the activities of financial entities whose role, as the emission market is growing, may in the future be bigger than today.

“The „Fit for 55” package, which is to be published in July, will be definitely the most important one. In order to implement the European Green Deal, achieve emission reductions in the EU by a minimum of 55 percent in 2030 and ensure climate neutrality in the EU in 2050, the European Commission has to, among others, revise the EU ETS and the Effort Sharing regulation (for non-ETS), updates to the directive on energy efficiency and RES, and the introduction of the Carbon Border Adjustment Mechanism. All of the above elements will have an impact on emission allowances prices. Increasing the EU target by at least 55 percent will translate into a significant increase of EU ETS and non-ETS reduction targets. “

Link to the article in english language: https://biznesalert.com/jeszke-fluctuating-prices-of-co2-allowances-make-investments-in-reduction-harder-interview/

Link to the article in polish language: https://biznesalert.pl/ceny-uprawien-do-emisji-co2-eu-ets-system-handlu-emisjami-wegiel-energetyka/