Emission allowances are one of the reasons for high energy prices. Wouldn't it be better to abolish them?
The emission allowance, like any idea or product from the European Union, is a subject of debate that often arouses emotions. These feelings are now all the more heightened as emission allowances are now making already expensive electricity more expensive. What does the EU want from allowances and how do they translate into the final price of electricity?
Background information
In this article I will discuss the EU Emission Allowance (EUA), which will be the most important issue for us. Something similar works in the US, but there is no room for it now.
The basic idea behind the EUA is to reduce emissions of greenhouse gases, which are considered to be carbon dioxide, methane, ozone, or perhaps nitrous oxide. That is, those gases that are produced by burning fossil fuels, waste or wood.
Allowances are issued by the European Union to each Member State according to the carbon intensity of each economy. The state then…
The largest system for trading allowances is the European Union Emissions Trading System (EU ETS). The system covers greenhouse gas emissions, power plants, energy-intensive industries and aircraft flying within the EU, Norway and Iceland.