• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 1 min Emissions Need To Be Halved To Avoid 3C Warming
  • 3 hours The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 12 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 48 mins Solar Panels at 26 cents per watt
  • 3 hours Coal Boom in Asia is Real and a Long Trend
  • 7 hours Pioneer CEO Said U.S. Oil Production would be up to 15 mm bbls/day NOW if we had the pipelines. Permian pipelines STARTING Q3
  • 13 hours OPEC, GEO-POLITICS & OIL SUPPLY & PRICES
  • 6 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 11 hours Trudeau approves Trans Mountain Pipeline
  • 13 hours The Plastics Problem
  • 6 hours US to become net oil exporter in November: EIA
  • 3 hours US Shale Drilling lacks regulatory body.
  • 5 hours Huge UK Gas Discovery
  • 5 hours Ireland To Ban New Petrol And Diesel Vehicles From 2030
The Militarization Of Libya’s Oil Infrastructure

The Militarization Of Libya’s Oil Infrastructure

General Haftar’s latest move in…

Why The Oklahoma Shale Boom Isn’t Taking Off

Why The Oklahoma Shale Boom Isn’t Taking Off

Major geological challenges and relatively…

Has the Impotent ETS Finally Been Abandoned by Europe?

The European Parliament had a key vote on the 19th of April to determine the fate of the EU Emissions Trading Scheme (ETS). Angela Merkel, the German Chancellor, had the power to save the ETS with but a phone call, and yet ‘the climate chancellor’ decided to let the impotent scheme wither and possibly die.

This could potentially have wide ranging consequences for renewable energy expansion in Europe.

 Regine Günther, from the World Wildlife Fund Germany, one of Germany’s biggest environmental organisations, stated that the 19th of April vote “was a hugely important vote for climate policies and for renewables themselves across Europe,” and now Europe’s renewable energy future is uncertain.

Launched in 2005, the ETS was designed to be the centrepiece for Europe’s climate policies, the beacon that led the way to a green economy.

Related article: Politics Still Rules the Climate Change Debate in the US

The goal was for a cap and trade system, which limited the amount of emissions that organisations could release, and then assigned tradable permits to represent those emissions. The idea was that a company that used dirty energy would produce more emissions, exceeding their allowance and then have to buy more, making dirty energy sources expensive. Companies using clean energy would use less than their allowance of permits, and be able to sell the surplus to make clean energy cheaper.

Problems emerged from the outset as far too many permits were offered, producing a surplus to demand which meant that prices crashed, making fossil fuels cheaper than clean energy sources. The whole issue was then compounded by the economic recession which saw demand for energy fall, reducing even further the demand for carbon permits.

Ms. Günther explained that, “because of the way the electricity market in Europe is structured, the lower the price of carbon, the more you pay for renewables, and thus the more carbon-intensive fuels you have in the mix. This is why Europe is burning so much coal now. It’s a fatal spiral downwards.”

She also noted that, “carbon emissions have to have a price if the Energiewende is going to succeed in Europe.” Only time will tell whether a new scheme is suggested in the future.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News