Newly re-elected German Chancellor Angela Merkel is in favour of a ‘back-loading’ measure in the EU’s carbon markets to push up carbon prices.
Proposals to temporarily ditch 900 million credits – which businesses buy and trade depending on their carbon emissions – need Germany’s backing to pass in the European parliament.
Speaking on Wednesday at an event in Hanover, Ms Merkel expressed support for the idea: “We need a degree of backloading of CO2 emissions so that the certificate price can reach a reasonable level again.”
She suggested boosted prices would help gas power plants – currently disadvantaged by cheap carbon credits – to compete with coal plants, reported Reuters.
The price of carbon hit pathetic lows this year but after her comments the EU’s benchmark price reportedly rose 8% to 5.35 euros a tonne.
Merkel also said Europe needed a goal to cut CO2 by 2030 because without it, “there will be no investment in power stations in the future because nobody will know exactly how it will develop”, the agency reported.