Polluter pays principle reloaded

The EU increases its commitment to the Paris agreement with a 55% reduction target in CO2 emissions by 2030, the EU Emissions Trading System (EU ETS) is in place since 2013.

AlphaValue’s leading analysts produced a study that explains how the price of carbon impacts different carbon-intensive sectors.

This will need actions in all sectors of the economy, while Europe’s decarbonisation has come from power generation so far. The price of CO2 is on the rise as a result, with various consequences for each sector (Oil&Gas, Cement, Steel, Utilities).

While a high carbon price might act as a catalyst in some industries, this will not be the silver bullet, especially where low-carbon alternatives are scarce and meeting such an ambitious goal will need more than market-based mechanisms.

Posted in ESG