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Carbon Must Rise to $175 a Ton to Halve Emissions (Update1)
2010-11-01 09:13:33.397 GMT
(Updates with quotes starting third paragraph.)
By Natalie Obiko Pearson
Nov. 1 (Bloomberg) -- The price of carbon dioxide must rise
to $175 a metric ton in order to halve global emissions by 2050,
the head of the International Energy Agency said.
The European emissions trading program, the world's largest
carbon market, isn't providing a reliable guide on the cost of
pollution to promote more investment in renewable energy and
other emission-cutting technologies, Nobuo Tanaka, executive
director of the Paris-based agency, said in an interview in
Singapore today.
"It's still too low," Tanaka said. "The EU Emissions
Trading System is more of a trial period. The current level of
price is not necessarily a good reference for the usefulness of
the system."
EU allowances for December 2010 delivery traded at 14.57
euros a metric ton as of 8:55 a.m. on London's European Climate
Exchange, compared with 14.63 euros at the close of the previous
session.
"To achieve a 50 percent reduction in carbon dioxide
emissions by 2050, you need it to be $175 per ton," Tanaka said.
More stringent emission reduction targets would lead to higher
prices, he said.
For Related News and Information:
Most-read alternative energy stories: MNI ALTNRG <GO>
New Energy Finance top news: TNEF <GO>
Renewable energy, environment page: GREEN <GO>
--Editors: Clyde Russell, Alex Kwiatkowski.
To contact the reporter on this story:
Natalie Obiko Pearson in Mumbai at +91-22-6612-9107 or
npearson7@bloomberg.net.
To contact the editor responsible for this story:
Clyde Russell at +65-6311-2423 or crussell7@bloomberg.net
