German industrial companies are up in arms about French calls to impose a minimum price on carbon emissions certificates to incentivize businesses to focus on energy efficiency.
In particular, German steel makers complain that the proposals make a mockery of the idea that the market can set the price of the certificates.
Hans Jürgen Kerkhoff, president of the German Steel Federation, told Handelsblatt that the whole point of emissions trading certificates was that the market can set the price of the certificates.
Besides, he added, significant price increases are to be expected in the coming years. “To avoid billions in costs and ensure that the steel industry remains competitive internationally, an economically and technically feasible allocation is crucial,” Mr. Kerkhoff explained.
The right to emit a tonne of carbon dioxide under the EU emissions trading scheme currently costs about €5 ($5.70). At its peak, several years ago, it hit €30.