Discussions intensified during April 2012 with aim of finding a solution to falling CO2 prices. According to analysts from Deutsche Bank, EU CO2 allowance (EUA) prices could fall below €5 per tonne if the set aside proposal is not agreed between EU law makers. Indeed, at the beginning of the month, prices fell to €6.14, prompting calls from Members of the European Parliament for the EU to intervene and reduce the supply of carbon allowances. Further to this, Gunther Oettinger, the EU’s Energy Commissioner publicly announced, at a European Wind Energy Association conference, that the European Commission needs to prepare a proposal to drive EUA prices up and encourage investment, as requested by the Parliament. In this respect, the EU’s environment ministers met on 19 April 2012 to discuss the future of the ETSi. During the meeting, DG Climate Action (DG CLIMA) was requested to make urgently proposals to stabilise, if not increase, the price of carbon, recommending that no option be overlooked. In her response, the Commissioner in charge of DG CLIMA, Connie Hedegaard, announced that, within two months, the European Commission would publish the first annual report on the ETS, originally scheduled for 2013. This report will analyse possible policy options, including set aside, establishing a floor price, or 2030 targets, with the aim of increasing the price of EUAs. In addition, the Commission will make a proposal to delay the sales from the early years of the 2013-2020 phase by an amendment through comitology to the Auctioning Regulation.
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