As the price of carbon has increased due to tightened climate policies, an MP supervising European Union carbon market reform is working on ways of preventing cheating.
As a result of rising emissions, compounded by an extraordinary energy crisis, several EU countries have demanded that speculative investors’ involvement be limited.
EU emissions prices have more than tripled in three years
“We need to take action and put an end to the manipulation.” However, we should not offer something that does not fix the problem and may have unintended consequences,” said Peter Lise, a key politician.
The carbon market is the bloc’s primary tool for meeting a more stringent climate target by 2030. Although Lisa has acknowledged that these measures will be on his agenda in the future, his batch of changes does not include any measures to restrict environmental costs.
Limiting market access just to enterprises who are part of the EU trading market, according to Lisa, is ineffective and may affect more than just the firms. It also won’t fix the problem.
While higher pollution charges are necessary to encourage the use of cleaner technology, the rapid expansion of the EU carbon market has created worries among energy-intensive companies about the transition to zero net emissions.