EU Environment Panel Backs Faster Approval of Carbon Fix
The European Parliament’s environment committee agreed to accelerate the adoption of a rescue plan for the bloc’s emissions market, which the European Commission wants to start as soon as possible.
The rescue plan involves delaying the sale of some permits to help prices rebound from levels the commission says are too low to discourage burning fossil fuels and spur investment in renewable energy. The cost of emitting one metric ton of carbon-dioxide has plunged 81 percent since 2008 amid a surplus of allowances exacerbated by the economic slowdown.
Neoclassical economic theory is not working. The fall in emission permit prices has not stimulated carbon intensive economic activity, which can be mitigated through buying cheap permits. Time for Plan B Keynesian Style. The price of emissions will be raised, which will then force companies to invest in clean technology to reduce emissions from their existing businesses. This capital investment will then create jobs and economic growth.
This European intervention strategy seems to fit the “Beautiful Alliance” very well. What a strange coincidence!