The so-called Magritte group are pushing for carbon pricing to be the main driver in combating climate change, and say a carbon price signal “should also be acknowledged as a tool to ensure a level playing field worldwide”.
The group owns more than 50 percent of EU power generation capacity and lobbies against renewable energy targets as a means to reach climate targets.
“The Magritte group stresses the need for a strengthened European CO2 market signal with the aim of providing industry with a visible scenario for its present and future long-term investments. This is a prerequisite to restore confidence in the system and activate its full benefit to climate policy,” a statement from group member Engie said.
Icis business director of carbon markets analytics Jan Ahrens said it is no surprise that the companies are calling for a single overarching approach. Although the EU’s emissions trading scheme (ETS) is the centrepiece of decarbonisation, current carbon regulation includes overlapping policies which undermine the efficiency of the drive, he said.
“For example, if emissions are reduced through the Energy Efficiency Directive polluters will be able to emit more in the ETS. So the different regulations are working against each other.
“The multiple regulations on the same topic are also a regulatory hassle for companies and cause further inefficiencies, so it is no surprise that these European utilities are calling for one overarching approach,” Ahrens said.
“You can also see this problem in the US. For example, transport fuel providers are covered by a myriad of regulations in California, and called earlier this year for a simpler, consolidated regulation in the shape of one strong ETS,” he added.
The Magritte group was established two years ago and includes Eon, RWE, Engie, Iberdrola, Eni, Enel, Gasterra, Gas Natural Fenosa and Cez group.