Global Offset Experts: EU expects carbon price to double by 2030 as polices take effect.

Feb. 25, 2011 - PRLog -- Global Offset Experts has been informed of a draft document, prepared for a presentation on climate change to EU member states in March, which shows that emission permits could cost $50 (€36) per metric ton in 2030, $71.2  (€51.5) in 2040 and  $69 (€50) by 2050. The EU regulator, the European Commission, is looking at scenarios for CO2 prices in the globe’s biggest cap-and-trade program, the pivot of its plan to reduce greenhouse gas emissions responsible for climate change.

The document states that the estimates in the “reference scenario” in the document dated 9 February are substantially higher than those used in the regulator’s previous analysis published in May 2010.

Climate spokesman for the EU, Isaac Valero-Ladron choose not to comment on the paper as the draft is still in “internal discussions.”  The EU intends to release its strategy for climate targets through 2050 on March 8, he told Global Offset Experts recently.

The EU’s cap-and-trade scheme began in 2005 and is now in phase2, which is due to end in 2012. The third phase, which starts in 2013 and runs until 2020 will see the total limit for the block on greenhouse gases become progressively lower every year. Under the program, permits not used in a given trading period may be carried over.

The European Commission’s roadmap is to be discussed by the environment minister of the EU’s 27 member nations at their next meeting scheduled for March 14. The higher prices estimates in the latest document reflect that permits can be held over as emissions caps are reduced.

“The main cause is additional action and banking over a longer period of time motivated by expectations on increases of allowances prices in the future due to the continuously decreasing cap after 2030 to 2050,” Global Offset Experts believes the draft states.

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