The European Commission is set to present the first outline of a proposed European Green Deal on Wednesday, in a move likely to spur tightening of the supply balance and a broader scope for Europe’s carbon market over the long term.
The new deal is expected to include a more ambitious EU greenhouse gas emissions reduction target for 2030 and strengthened parameters for one of the bloc’s core climate policy tools, the EU Emissions Trading System.
“The Green Deal is likely to be highly significant for the EU ETS, as the change to the 2030 target, from 40% to 55% emission reduction, will lead to a significant change in the Linear Reduction Factor,” said analyst Trevor Sikorski at research company Energy Aspects.
Read more at: S&P Global
