CIG: IEA report says the carbon credit price needs to double.

Nov. 11, 2009 - PRLog -- CIG sources indicate that the urgency for a global climate treaty is gaining with the International Energy Agency‘s latest data highlighting the need for immediate action.
The agencies, Fatih Birol has said that the cost of carbon credits needs to more than double from present EU trading levels to enable hi-tech climate change solutions to be economically viable.

The recently released report also highlighted that the globes dependence on fossil fuels,- coal, natural gas and oil-, needs to reach its turning point by 2020 and then start easing off.  
Birol added that a global “revolution” in the energy and transport industries was becoming critical.

"We need a deal in Copenhagen. We need a signal for the energy industry. Without that, nothing will move," CIG believes he was quoted as saying.

The cost of a permit for a single tonne of carbon emissions will have to reach $50 by 2020 and $110 by 2030 in industrialized nations with a slightly lower cost in emerging nations. CIG research shows that permits are presently trading at around $21 a tonne, with a U.S. trading scheme still only voluntary while the Senate debates passing proposed new controversial legislation that is unlikely to see the light of day before the end of the first quarter of 2010.

The IEA chief economist said their predicted price "is much higher than the current EU price and higher than the discussions taking place in the US and elsewhere. But to encourage the investment and make the substantial change that is necessary, we need this price".

The report shows that rapid developments are needed in renewable energy, with an increase in nuclear energy to enable a global move away from fossil fuels, adding that biofuels were unlikely to play much of a part, CIG understands.

The IEA insists that the biggest responsibility for emission cuts lies with the U.S., with China in the best position to make a powerful contribution.  The world’s heaviest polluter will account for 25% of emission cuts if it meets its own targets.

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