We should be open to his revision or at least delay," stressed German Chancellor Friedrich Merz, commenting on the expanding burden of the CO2 rights system. Earlier, the French president Emmanuel Macron spoke in a akin tone.
Mr Merz stressed that the aim of the EU's emanation rights marketplace is to reduce them while at the same time supporting production decarbonising companies. – However, if this is not achieved and it is not the right instrument, we should be open to its revision or at least delay said the German Chancellor at the summit of European manufacture in Antwerp.
Following the statements of the German Chancellor, the CO2 emanation right rate fell by as much as 8 percent, most notably from May 2022, to EUR 72.18 per tonne. Currently, it has a 7.4% discount to EUR 72.66.
Yan Qin, the chief analyst at ClearBlue Markets believes that Merz's message is “the last drop that shed magic.”
– Market participants are now considering the anticipation of political intervention to increase the supply of allowances over the next fewer years in order to avoid a sharp increase in EUA prices and reduce costs for industry – he said.
In the 3rd quarter, the European Commission is to announce proposals for improvement of the European carbon market. Changes are intended to give companies participating in the strategy more time to decarbonise and slow down the withdrawal of free emanation allowances.
Emmanuel Macron spoke earlier in a akin tone. Although the president of France opposes the complete departure from climate policy, he considers it essential to revise the current ETS and ETS2.
– It is clear that it is presently not working well in any countries, due to the fact that we have a marginal cost issue in those countries that are inactive dependent on fossil fuels and due to the fact that we have speculation in the auction market. In this way, the ETS, which should be around 30-40 (euro per tonne of CO2 – PAP), is now over 80 said Macron.
– This is simply a very dense burden on any economies. This is why the Commission will present concrete solutions in March that will reduce the burden. There are respective method solutions – he added.
Source: PAP / Pulpbusiness.pl
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