High Energy Prices Threaten the EU Emissions Trading System

Summary:

Putin’s invasion of Ukraine massively raised the price of natural gas which  increased over five-fold in 2020/21, and that of oil up 50 per cent from the previous year. The European Commission and national leaders called for an acceleration of the EU’s planned shift from fossil fuels to renewables: this would cut both emissions and the Kremlin’s revenues from energy exports to the EU. However, there were disagreements on the policies needed to do this: MEPs on the right and left called for the European Commission’s plans to expand carbon pricing to be shelved, and some  were also hesitant or openly against the plans. The author argues that EU member-states should not stop the expansion of emissions trading to keep a lid on energy prices. Instead, they should increase income support for poorer households and incentives for green investment.

• Alternative Source 1

ESO Records

CER Insight: March 2022: How to Make the New Emissions Trading System Work for Consumers https://www.europeansources.info/record/how-to-make-the-new-emissions-trading-system-work-for-consumers/

CER Insight: Oct. 2021: Why have Europe’s Energy Prices Spiked and What Can the EU Do About Them? https://www.europeansources.info/record/why-have-europes-energy-prices-spiked-and-what-can-the-eu-do-about-them/

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