Following the remarks, the price of one ton of carbon dioxide (CO₂) equivalent fell by 10% to €71.40, reaching its lowest level in about six months.
Carbon allowances traded under the EU’s flagship climate instrument, the European Union Emissions Trading System, consist of permits that companies must purchase in order to emit. With the latest drop, carbon allowances have lost more than 23% of their value compared with the roughly €93 per ton level seen in mid-January.
In a speech on 11 February in Antwerp, Friedrich Merz said that redesigning the system could be put on the agenda. In a panel with Markus Kamieth, CEO of BASF, Merz stated that the right tools must be chosen to combat climate change, but not at the expense of European industry and employment. He added that the current system could be changed if it fails to deliver the desired results, described the ETS as a “major issue that has been overlooked,” and noted that it is being discussed at the leadership level.
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