The European Commission will remove 800 million allowances from the EU Emissions Trading System (ETS) in a bid to increase the currently extremely low price of CO2 and make coal-fired power less financially attractive.
Maros Sefcovic, the commission’s vice-president for energy union, said this morning that he believed the move will lead to a “more realistic carbon price”.
“We have a system that technically works perfectly, but at the same time, [has resulted in] a tonne of CO2 [costing] between €4-5 ($4.40-5.50),
