How the coronavirus outbreak affects the EU’s 2030 climate targets
(EurActiv, 14 Apr 2020) Ultimately, the coronavirus pandemic may slow down initial plans to adopt the European Climate Law and a number of other climate-related policy proposals, writes Robert Jeszke.
Robert Jeszke is Head of Strategy, Analysis and Auction Department and the Centre for Climate and Energy Analyses (CAKE) in the National Centre for Emission Management (KOBiZE), part of the Institute of Environmental Protection – National Research Institute.
The COVID-19 pandemic currently hitting Europe has significantly slowed discussions on the EU Green Deal. The crisis hit soon after the EU’s Climate Law proposal was presented, with plans to increase the bloc’s 2030 emissions reduction target from the existing 40% to 50–55%, compared to 1990 levels.
On the EU carbon market, the current price of EU Allowances (EUA) reflects increasingly negative investor sentiment caused by the pandemic, which have wider repercussions on global financial markets.
The pandemic has caused a drop in emissions from industries covered by the EU Emissions Trading System (EU ETS), reducing EUA demand and resulting in a price drop not seen since 2014. Spot market prices in February were over €25 per allowance and fell to €15-16 in mid-March before bouncing back to the current level of around €20.