France calls for minimum carbon price to counter oil crash

(Climate Home News, 27 Apr 2020) The Covid-19 crisis should strengthen Europe’s resolve to achieve the climate objectives of the Paris Agreement by triggering policies that maintain fossil fuel prices above a minimum level, French authorities have said.

With oil prices hovering around $20 per barrel, world markets are awash with excess oil that risks putting the clean energy transition in jeopardy, France has warned.

“Extremely low fossil fuel prices” seen recently on world markets “do not reflect their true cost for climate,” the French say in a position paper sent to other EU member states.

“The cost of fossil energies should be proportionate to their true environmental impact,” argues the document, obtained by Euractiv.

The French paper was circulated to national delegations ahead of an informal video meeting of EU energy ministers on Tuesday (28 April).

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Climate Home News, 27 Apr 2020: France calls for minimum carbon price to counter oil crash