Pascal Canfin, Gérard Mestrallet and Alain Grandjean offer a price-corridor for the European carbon market
- 10 June 2016
Pascal Canfin, Gérard Mestrallet and Alain Grandjean were commissioned by Ségolène Royal, Minister for Ecology, Sustainable Development and Energy to draft a report on the carbon price.
Friday 10 June, they delivered some of their work at the members of the coalition leadership Carbon pricing, reunited to Ministry of Environment.
The six pages of the document reaffirm "the decisive role to be played by carbon pricing instruments and climate finance, to engage effectively the low carbon transition."
The report then focuses more on the European situation and indicates that the level of the carbon price is not sufficient to achieve the objectives set by the European Union.
"Today the price of carbon in Europe is around € 6 and is very volatile. This level is not sufficient to trigger the low-carbon investment needed [...] and promotes more coal than gas for example. Furthermore, price volatility does not give a clear and predictable signal to investors. "
In this sense, Pascal Canfin, Gérard Mestrallet and Alain Grandjean propose to stabilize a price corridor that could frame market changes between a minimum and a maximum and, therefore, encourage low-carbon investments.
The final report will be presented on 10 July.