CO₂ Panel Discussion: “The European Carbon Market in 2012”

On 28 February 2012, the European Energy Exchange (EEX) hosted a Panel Discussion on “The European Carbon Market in 2012” for journalists in Brussels – right at the heart of European policy making. In particular, the discussion considered the current state of the EU ETS, asking whether its effectiveness is at stake at current price levels, and whether this is a case for political intervention (e.g. for a “set-aside” of emission allowances).
 

... to the webcast (English) 

 ... to the summary report (English)

Synopsis

In 2012 the EU Emissions Trading System (EU ETS), will make its transition from the second to the third trading period, and will enter a whole new stage of maturity. This comes along with a widening of scope (e.g. inclusion of the aviation sector) but also further harmonization within the system (e.g. introduction of a central EU registry and greater importance of auctioning for the allocation of allowances). How these significant changes are managed will therefore be crucial for both the functioning and credibility of the EU ETS. This is especially true at a time, where prices in the European carbon markets are hitting record lows, putting general question marks behind the further outlook of carbon trading in Europe.

Is the EU ETS’s effectiveness at stake at current price levels, and is this a case for political recalibration? This panel discussion will consider the pros and cons of political intervention and discuss the likely effects on the carbon market. Which implications can the voting of the European Parliament’s Industry Committee on the “set-aside” of EUAs have (scheduled for 28 February)? Furthermore, how do the large amounts of auctioned allowances fit it into the gloomy price scenario of an oversupplied market and which role and prospects can the aviation sector have in this context, given the massive international disputes that have surrounded its inclusion into the EU ETS?
 

Panellists

• Peter Reitz (European Energy Exchange, CEO)
• Bas Eickhout (Member of the European Parliament, Environment Committee)
• Raphael Calel (London School of Economics, Grantham Institute on Climate Change and Environment)
• Trevor Sikorski (Barclays Capital, Head of Environmental Market Research)
   
  

Moderator

• Stig Schjølset (Thomson Reuters Point Carbon, Head of Carbon Analysis)