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Poland Demands Delay Of EU Carbon Trading Reform Until 2021

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Peter Teffer, EUobserver

A simmering disagrement between member states about when to start a market stability reserve for the bloc’s struggling emissions trading system has been taken up a political notch by Poland.

Polish PM Ewa Kopacz has written to European commission president Jean-Claude Juncker asking that the market intervention mechanism only kick into place in 2021.

The letter, signed Wednesday 25 February, came the day after MEPs in the environment committee agreed the scheme should go into place two years earlier.

The letter was also signed by the leaders of Bulgaria, Croatia, Cyprus, Czech Republic, Hungary, Lithuania, and Romania.

The start date matters because the sooner the reserve starts operating, the sooner the carbon price is expected to rise. This will predominantly effect economies with many fossil-fuel reliant industries. […]

Kopacz listed five potential consequence that she fears an early MSR introduction will have, including an “impact on electricity prices, … influencing the budget revenues from the auctioning of emission allowances, … [and] weaker competitiveness”.

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