PARIS: The transition to a low-carbon economy must be underpinned by financial market reforms to drive investments into clean technology, Macron told a European Commission conference on sustainable finance in Brussels.
With its Emissions Trading Scheme, Europe has created the world’s largest carbon market but the price of CO2 allowances is currently too low to drive investments into clean technologies.
France has done its part by setting a minimum price of carbon of €44 a tonne on its domestic market this year, a price floor that will be raised to €84 a tonne effective from 2022. “But it won’t be sufficient,” the French President said, calling for more determined European action.
“This is why at the European level we need a carbon price floor,” Macron stressed, saying “it is the only way” to reach Europe’s long-term objective of becoming carbon neutral.
“I know it is not easy. Everywhere, we will face resistance,” the French president admitted, saying he will defend the idea at the June EU summit.
