Floor prices: necessary support for a weak carbon market

The document asserts that the revamped EU ETS rules for 2021-2030 are insufficient to limit global warming to 1.5 degrees, necessitating additional national actions such as carbon floor prices. It highlights the UK's experience, where a floor price introduced in 2013 contributed to a nearly 60% drop in coal emissions in 2016. The text notes similar initiatives in the Netherlands and considerations in Nordic countries, arguing that such price floors provide investment certainty and discourage the use of coal to avoid stranded assets.

• The European Parliament's updated rules for the EU Emissions Trading System (EU ETS) for 2021-2030 are deemed insufficient to align emissions cuts with the Paris Agreement's 1.5-degree warming limit.
• Other European entities are adopting or considering floor prices: the Dutch government announced a rising price for its electricity sector to reach EUR 43 by 2030, and Nordic countries are exploring a regional carbon price floor.
• Strong climate policies, including meaningful carbon pricing, can reduce emissions by up to 20% before implementation by prompting investors to withdraw funds from coal plants to prevent stranded assets, according to the Potsdam Institute for Climate Impact Research.

APA

Amaral, K. (2018). Floor prices: necessary support for a weak carbon market. Carbon Market Watch. https://carbonmarketwatch.org/2018/02/06/floor-prices-necessary-support-weak-carbon-market/

Chicago

Amaral, Kaisa. Floor prices: necessary support for a weak carbon market. Carbon Market Watch, 2018. https://carbonmarketwatch.org/2018/02/06/floor-prices-necessary-support-weak-carbon-market/.

Wikipedia

{{cite press release |last1=Amaral |first1=Kaisa |title=Floor prices: necessary support for a weak carbon market |publisher=Carbon Market Watch |date=6 February 2018 |url=https://carbonmarketwatch.org/2018/02/06/floor-prices-necessary-support-weak-carbon-market/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{amaral2018floor, author = {Amaral, Kaisa}, title = {{Floor prices: necessary support for a weak carbon market}}, publisher = {Carbon Market Watch}, year = {2018}, month = feb, url = {https://carbonmarketwatch.org/2018/02/06/floor-prices-necessary-support-weak-carbon-market/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }