Bon Climate Summit is being discussed to meet the Paris Agreement and to raise funds for security measures. So the EU's carbon credit proposal is in dispute.
Between the 28 countries of the European Union, an agreement has been reached on improving the carbon credit system right in the middle of the climate conference. European climate cleric Miguel Aria Annet has described it as a concrete step for the Treaty of Paris, but the pro-environment supporters are calling it a half incomplete step and criticizing it. The European Union's carbon emissions trading limits the carbon dioxide released by big factories and other companies.
What is carbon emission system:
Emissions trading in the European Union was started in 2005 and carbon credit papers are sold under a shared system. Its aim was to encourage enterprises for environmentally sound production. Under this, more carbon emissions companies could buy carbon credit paper from those companies which are producing less carbon than the fixed scale.
Environmental guardians consider it an undesirable step to reduce emissions. The old rule of the World Wide Fund, Juliette De Grapere says the old rule has failed to reduce carbon emissions in the last ten years and the new rules will also have very slow effects. The problem is that the carbon credits certificates have been in such a large number of markets that their price is very low and it is easy and cheap to buy. It has not forced the enterprises to invest in new technologies.
One of the enterprises was given a large number of free certificates, on the other hand, due to the financial crisis, his demand was very low. The price of one tonne carbon dioxide was 5 euros, while experts believe that the price of 20 euro per tonne can only put pressure on enterprises to invest in environmental technology.
Goal of reforms:
The goal of European reforms is to reduce the number of certificates to reduce their market and to increase the prices so that they can deal with the demand and supply of the market. For this, 2 billion certificates will either be kept in reserve or will be eliminated. Consequently, the price of one tonne carbon dioxide can increase to 25 Euros. The enterprise organizations feared that this price would be 40 euros and they would be harmed in the international competition.
According to German environmental minister Barbara Hendrix, after the reforms, carbon certificates will be removed from the market faster so that their price increases and they can be encouraged for environmental investment. On the other hand, accessible rules have been made for enterprises so that they do not go to countries where the rules of the environment are not strict. The worry of environmental protectionists is that in the future, there will be financial help in future rather than penalizing more poisonous enterprises.