Tendances Carbone no. 82 'A 2030 framework for climate and energy policies: CDC Climat Research's answer'

Among the publications of CDC Climat Research, 'Tendances Carbone' bulletin specifically studies the developments of the European market for CO2 allowances. This issue addresses the following points: To establish a climate and energy policy in the EU in 2030, CDC Climat Research addresses three main recommendations to the European Commission: (1) Establish a binding, single and ambitious CO2 emission reduction target of at least 40% in 2030. (2) Put the EU ETS as the central and non-residual instrument aimed at promoting cost-effective reductions in Europe and other parts of the world. (3) Define a stable, predictable and flexible climate regulation to limit carbon leakage and encourage innovation. Key drivers of the European carbon price this month: - The European Parliament has adopted Back-loading: 1.85 billion EUAs will be sold at auction between now and 2015 instead of 2.75 billion; - Phase 2 compliance: a surplus of 1,742 million tonnes (excluding the aviation sector) including auctions. - Energy Efficiency Directive: 22 of the 27 Member States have forwarded indicative targets for 2020 to the European Commission; these targets will be assessed in early 2014