–The EU may buy 25 billion tons of carbon credits in the 30-years to 2050. At say €100 euros each, this would cost €2.5 trillion — finally the money needed for climate action is coming into view.
By Mathew Carr
June 14-17, 2023 — Check out the middle column of this chart — I highlighted the relevant section in red …(I’m not saying this will come to pass, but the analysis is official from the EU advisory board, which was published Wednesday):
It shows that the EU may buy 25 billion tons of carbon credits in the 30-year period — it is downplayed a bit (labelled mitigation outside EU) so as not to draw attention to it, maybe?
It will be interesting to see if this impacts on climate talks continuing in Bonn today.
At say €100 euros each, this would cost €2.5 trillion — finally the money needed for global climate action is coming into view.
Relevant section of the report below:
5.2
Recommendations for a 2040 target and accompanying greenhouse gas budget for 2030-2050 In light of the evidence summarised in the previous section, the Advisory Board recommends a 2040 emission reduction range of 90–95% compared to 1990, corresponding to a greenhouse gas budget of 11-14 Gt CO2e over the period 2030-2050.
Pursuing the more ambitious end of this range improves the fairness of the EU’s contribution. Ambitious domestic emission reductions need to be complemented by measures outside the EU in order to achieve a fair contribution to climate change mitigation.
To deliver a contribution to the achievement of the Paris Agreement that is both fair and consistent with the physical science of climate change, the EU must therefore do the following.
- Aim for the highest ambition in domestic emission reductions and sustainable carbon
removals, while accounting for feasibility constraints, environmental risks and technological deployment challenges. - Contribute to direct emission reductions outside the EU. This action is necessary in the light of the shortfall identified between the feasible pathways and the fair share estimates. This report does not provide advice on the options available for doing this, or on the adequacy of the EU’s current international collaboration on climate action. As a first step, the Advisory Board notes the importance of the EU communicating how it considers its contribution to be fair and ambitious, when the post-2030 target is submitted as an NDC under the Paris Agreement.
- Pursue sustainable net-negative emissions after 2050, as required under the European
Climate Law, which would help manage temporary temperature overshoots and support the international balance of greenhouse gas emissions.
Nature-based carbon rises briefly
Nature based carbon futures rose briefly on CME by 4.7% to $1.80/ton …the highest for more than a month, before settling Thursday little changed at $1.70/ton.
