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Dutch cabinet to present carbon floor plans later this year


07 Mar 2018 09:19

Dutch energy minister Eric Wiebes. Photo: government

Dutch energy minister Eric Wiebes. Photo: government


07 Mar 2018 09:19

(Montel) The Dutch government will present its plan on how to introduce a domestic carbon price floor from 2020 later this year, a government spokesman told Montel on Wednesday.

Legislation was being prepared by the government, while economics minister Eric Wiebes would inform parliament about separate plans for a coal phase-out “in the coming weeks”, said Paul van der Zanden, a spokesman at the country’s ministry of economic affairs and climate policy.

The four-party coalition government introduced plans for a carbon price floor for emissions from power generation last autumn, indicating it would start at EUR 18/t before rising to EUR 43/t by 2030 – significantly above current EU ETS prices of just over EUR 10/t.

A unilateral carbon floor would likely boost Dutch power prices and increase power imports from neighbouring Germany, analysts have told Montel.

The measure will be introduced to help the Netherlands reduce its carbon emissions by 49% by 2030, compared to 1990 levels, which is a key target in the coalition agreement.

It also wants to phase out coal from electricity production by 2030.

The Netherlands has five coal-fired power plants in operation with a combined capacity of 4,780 MW. Three of them – Uniper’s 1.1 GW Maasvlakte 3, Engie’s 800 MW Rotterdam and RWE’s 1.6 GW Eemshaven plants – were commissioned as late as 2015.

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