(Montel) The Dutch government confirmed on Friday its plan to introduce a CO2 price floor for the electricity sector from 2020.
Last year, the coalition government set out a plan to help rein in power plant emissions due to relatively low carbon prices in the EU ETS.
It indicated back then that a carbon price floor would start at EUR 18/t and rise to EUR 43/t by 2030 – significantly above ETS prices of around EUR 7.50/t at the time.
Benchmark carbon prices are currently trading above EUR 21/t.
“The Dutch effort is aimed at tightening up the EU ETS and, where this is not possible, to make agreements in the northwest European context,” the government said in the statement today.
Analysts have said that a carbon price floor in the Netherlands would likely boost Dutch power prices and increase electricity imports from neighbouring Germany.
The Netherlands aims to reduce carbon emissions by 49% compared to 1990 levels by 2030.