Oil and gas in the capitals ///

Europe’s “green dash” is ebbing. One of the pillars of the EU green energy policy, the cap-and-trade CO2 quota system, the European Trading System (ETS), is crumbling after an April 2013 vote in the European Parliament rejected a cut in emission quotas for sale, to support carbon prices. The market reacted by cutting carbon prices almost one-half, in contrast to the EU Commission’s ambition to raise CO2 prices. Carbon emissions now trade at about $3.50/metric tonne, but the cost of carbon capture and sequestration (CCS) may be about $100. European carbon prices are now so low, as to portray the ETS as a symbolic measure for fighting climate change, with no real impact. Symbols may satisfy ideological needs, but they give little incentive for cutting emissions and have little effect.

Log in to view this article.

Not yet a subscriber?  Find out more and subscribe today! 

Already a subscriber but don’t have an online account? Contact our customer service.



*Access will be granted the next business day.