Polish Briefing: Poland appeals to the EC to investigate the rising prices of CO2 emission allowances

0
7

What goes on in Poland on the 26th of March.

Poland appeals to the European Commission to investigate the rising prices of CO2 emission allowances

The recent increase in the price of EU allowances has raised concerns among participants in the EU ETS market. There have been suggestions about the possible speculative nature of changes in the market for CO2 emission allowances. Their price has already reached EUR 42 per ton. The Ministry of Climate and Environment sent a letter to the European Commission asking to investigate the matter. A few weeks ago, Denmark made a similar appeal.

BiznesAlert.pl learned the contents of the letter, which was sent to the vice-president of the European Commission, climate commissioner Frans Timmermans, competition commissioner Margrethe Vestager and energy commissioner Kadri Simpson. According to the letter written by the Minister of Climate and Environment, Michał Kurtyka, the volatility of prices that we have recently observed may weaken the effectiveness of the entire EU ETS system. „The decrease in energy demand due to the COVID-19 outbreak suggests that the demand for allowances should also decrease,” the letter reads.

Meanwhile, this year has seen record-high prices. In February, the threshold of EUR 40 per ton was broken, and in March the price climbed to EUR 42.

„Poland recognizes the role of financial entities in ensuring market liquidity, but this share should be treated as a long-term investment and should be analyzed in this respect. High volatility of emission allowance prices and the resulting need for constant updating of prices and forecasts negatively affect the planning of the investment process,” the minister emphasizes. He adds that Poland supports the stimulation of low-emission investments under the EU ETS, but the excessive price of allowances at this stage may have a number of negative effects, including many companies not being able to limit their loss of liquidity, which puts their financial credibility in question. „This can lead to cost shifting and hinder the green transformation of assets, which is especially important in the period of the recession caused by COVID-19,” we read.

Further, Minister Kurtyka emphasizes that the current upward trend in the prices of CO2 emission allowances may threaten the EU’s goals and have negative effects on the EU climate and social policy. „Bearing in mind the concerns of our businesses, as well as the purpose of the EU ETS, we believe that this issue should be clarified. Poland urges the European Commission to investigate this matter and take appropriate measures, including changes to the EU ETS and other directives,” the letter reads.

ZOSTAW ODPOWIEDŹ

Proszę wpisać swój komentarz!
Proszę podać swoje imię tutaj