Germany’s DIW economic research institute has released a study that claims carbon dioxide emissions rights prices will have to double to more than €30 per tonne to accelerate the development of both clean coal technologies and wind. At around €18, prices of emission credits have already more than doubled since the European Emissions Trading Scheme (ETS) was launched early this year.
“A CO2 emissions price of more than €30 a tonne would make power production from coal with CO2 sequestration and renewables – especially highly efficient wind turbines – economically feasible,” the study says. The study goes on to suggest that while sequestration technology had not yet reached maturity, the techniques are likely to become competitive from 2015 – 2020.