A good price for EU carbon allowances on the trading market is required in order to boost investment in the low carbon economy.
For investment in the low carbon economy is not in fact something we want. Sure, we want the result of a low carbon economy (OK, well, let\’s stick within the confines of the current policy argument at least), but we don\’t want investment in it. We\’d much prefer to get a low carbon economy with absolutely no investment at all. Heck, even get paid to be creating it as with, say, eliminating fossil fuel subsidies.
It could be true that we need to invest in a low carbon economy but if it is that\’s a cost to us of getting to our goal, a low carbon economy.
And the low price of carbon credits is not telling us that we\’re not going to get a low carbon economy. It\’s telling us that it\’s going to be heap to get one.
For we\’ve already limited emissions through the cap….and of course, Our Lords and Masters could not possibly have made a mistake on the level of said cap. So, having already capped emissions then price of the permits is telling us how expensive it is to meet that cap.
Or, if the price is low, that we don\’t need to invest very much because we\’re already meeting the cap without much investment.
These twats are getting confused about prices: yes, sure, they\’re incentives. But they are also information: here, the information being that we don\’t need to invest lots to meet the cap.