The German government does not find common grounds in the debate to repair the ETS. Today, Federal Environment Minister Peter Altmaier made an announcement that EU countries should push for a shortage of emission rights that should be sold in the ETS. In response, Economy Minister Phillip Roesler strongly refused such a political intervention on the carbon market.
This discussion was sparked due to the decision that will take place next Tuesday concerning back loading emission allowances. The idea is to take emission rights out of the market for two years. Such a decision would stop the dramatic fall in the price of emission allowances, which lingers at the moment lingers between 3 to 4 Euros. The price drop occurred due to an overloading of emission rights that was caused by the economic crisis.
To bring his point across, Minister Roesler canceled his visit to Turkey to combat the decision of back loading allowances. According to Roesler, back loading would hurt the economic competitiveness not only in Germany, but also the Euro-crisis countries like Spain, Greece and now Cyprus.
Altmaier however, with his counterparts from France, Italy, Great Britain, Sweden and Denmark support the policy of back loading, as it will “fix the system that is in need of much reform.” “Emission trading is in deep crisis, he stated. “If we do not strengthen the system now, then eight years of climate efforts have been in vain,” he added.
If you would like to make your own statement to reform the ETS, click here and compensate for your emissions!