Brussels proposes ‘just transition’ fund in €1 trillion green investment plan
The European Commission on Tuesday unveiled a €1 trillion investment plan to help meet the EU’s climate goals, seeking to divert 10% of the funds towards a “just transition” mechanism for fossil fuel-dominant regions, and potentially channelling aid to ETS installations. This measure could be among the first ones to help achieving the neutrality goal proposed before COP in December as the „European Green Deal”.
Key outcomes agreed at the UN climate talks in Madrid in December 2019
- Matters including Article 6, reporting requirements for transparency and “common timeframes” for climate pledges were all punted into 2020, when countries are also due to raise the ambition of their efforts.
- On 12-13 December, EU heads of state met in Brussels and agreed to make the bloc “climate neutral” by 2050. Despite resistance from Poland, which has until next summer to come onboard, the European Commission revealed a “European Green Deal”, which, if it becomes law, will commit at least 25% of the EU’s long-term budget to climate action.
- The conversation around Article 6 is technical and full of jargon, yet the way the rules are designed could “make or break” the entire Paris Agreement. This high-stakes situation was a key reason for failure in Madrid.
EUA Price increased
The carbon price opened, today, at €25,17/tCO2 at the ICE ECX exchange in London. EUA Dec-20 increased by €1.23 last week and closed at €25.44 (+5.08%). Traded volumes increased compared to the previous week with 120.9Mt versus 96Mt exchanging hands on ICE across contracts. The total Open Interest decreased by 6.3Mt for a total of 808.5Mt.
Source: Point Carbon, Clear Blue Markets, London & CPLC, Washington