New EU Presidency Wants a Greener Economy
DENMARK will take over the presidency of the European Union in January and believes that the current financial crisis presents the region an opportunity to convert to a greener economy.
Danish Minister for Climate, Energy and Building, Martin Lidegaard stated that the answer to the current financial problems is to invest in energy efficiency and green growth, according to a report from Reuters.
Denmark is already targeting a far higher, generally double, emissions target - 40 percent by 2020 along with fossil free fuel by 2050 - displaying an awareness of environmental and energy efficient concerns.
As reported already on these page, yesterday, the first challenge Denmark will face under its EU Presidency is the falling carbon price in the EU’s Emissions Trading System (ETS)
Under the ETS currently about 11,000 of the region’s largest emitters have their emissions capped, meaning they have to buy carbon permits to cover their emissions. The idea is that permit prices will drive energy efficiency improvements, leading to a reduction in emissions, but as the price is at an all-time low of €6.30, the ETS loses motivation.
Hence this weeks news, for a proposal to make the cap on emissions tighter through reducing the number of permits available, auctioning the majority of permits during 2013-2020, the third phase, instead of the previous strategy of providing them without cost.
Thursday 22nd December 2011