But the playing field has changed this year. The rate at which the number of CO2 allowances decreases annually has been increased and by tightening the rules, companies that emit a lot will receive fewer free allowances. European Commissioner Frans Timmermans is expected to announce further tightening up next summer.
This combination is an important force behind the rising prices, says De Bruyn. There’s just something else going on, he thinks. “Years ago we already discussed at drinks that the CO2 price had to go up. It is a relatively small market and fewer and fewer rights are being added. It is a kind of bitcoin. Investors have dived into this.”
If the European Commission goes through with its plans this summer, Dutch industry will have to buy 20 to 30 percent of the emission rights by 2030, de Bruyn estimates. The costs of CO2 emissions are therefore felt. “On the positive side, it’s on the radar. Companies see that they have to do something.”
Is sustainability accelerating?
The increase in the CO2 price is still too early for new major investments in sustainability, but does lead to concerns about the competitive position, according to a tour of the NOS along major CO2 emitters. This applies in particular to industry with competition outside the European Union, where no CO2 taxes apply.
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