Dear Sir or Madam,
Last Friday, the Federal Environment Ministry presented the results of three scientific studies on the socially responsible taxation of CO2 in Germany. Between the predominantly undisputed understanding that every person has to personally contribute something to the reduction of greenhouse gases and the trivial fact that people voluntarily seldom do so, an acceptable political solution should be found.
Federal Environment Minister Svenja Schulze has highlighted a so-called “climate premium” as a central result of the expert reports. The idea behind it is a kind of reward principle, which is supposed to serve as an engine for the reduction of CO2 and its equivalents already in obligatory European emissions trading. Theoretically, it should work in such a way that the carbon tax, which is still to be quantified, does not flow into the state as revenue, but is repaid in stages to the citizens. In the average case, a household would therefore receive the tax refunded in full. The variants are, however, in the actual carbon footprint. If this is significantly low, money is left over, but if you behave more damaging to the environment, the repayment is correspondingly lower. Thus, according to the common opinion of the scientists and the Minister, a steering effect for climate protection would be created. Whether this idea will be established as a wearable political model remains to be seen. However, the minister emphasized that climate change will not allow any further hesitation if parts of the earth should not become uninhabitable for humans.
Actually the transport and buildings sectors are reversing the savings in the energy sector. According to initial calculations by the German Energy Industry Association, in the first half of 2019 the share of renewables in electricity consumption was higher than ever before, which resulted in a 15 percent less CO2 emissions compared to the first half of 2018. However, this positive effect is already evaporating in Germany in the sectors that have not yet been regulated, which also includes the continuing rise in flying tourism. Unfortunately, development worldwide is still scary. This is shown by the absolute measurement results of the Mauna Loa Observatory in Hawaii. Recently, at 415.26 ppm, the highest concentration of CO2 in the earth’s atmosphere was measured since the beginning of records. The Observatory also pointed out that the three strongest climbs were seen in the past four years – which were also the four warmest years since recording began.
The market for European Pollution Rights has shown its unstable side in the past week. After a recovery period at the beginning of the week, the price rose to a high of 27.36 EUR, but was then significantly burdened by the usual quarterly technical sales. At a level of around EUR 25.70, the price was clearly supported again and was continuously rising up ever since. In today’s early trading, the December Future is already valued one euro higher.
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(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask has usually in Spot Market a visible spread. CER CP1 and ERU are eligible in ETS until end of March 2015 and must be swapped into EUA. Crude Oil and Euro Currency shows day-end-exchange quotes. This market information has just an informational character and are no advice or offer to trade carbon emission rights or their futures and options. If you want to unsubscribe, please reply to this mail.)
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