Most businesses which have to pay for their carbon emissions on the EU Emissions trading scheme want action to bring up the price of allowances.
A poll of businesses by the International Emissions Trading Association (IETA), the voice of firms from wide-ranging industries about carbon permits, found a majority were in favour of creating a reserve fund that would buy surplus Certified Emission Reductions (CERs). Buying up CERs could tackle the lack of demand for them in the market.
Carried out along with UK and Indian-based consultancy Climate Connect, the “Vote For Doha” survey of carbon market participants found most firms also favoured the decision of the European Commission to backload carbon permits from auction in EU ETS. This was an attempt to raise allowance prices in the short term.
The survey found a “strong level of optimism” that there will be an agreement for the Second Commitment Period of the Kyoto Protocol to extend global climate agreements which expire at the end of 2012, as 80% of respondents believed COP 18 talks in Doha over the next couple of weeks will succeed on Kyoto.
Speaking ahead of the talks, Dirk Forrister, CEO of IETA said: “We need a future international policy framework that uses carbon markets to stimulate businesses to invest in climate action at the scale of the need. Right now, too much private capital is sidelined, waiting for clearer policy signals from governments.”