“The low ETS price – albeit temporary – can delay investments in emission-saving technologies because the urgency appears to be reduced,” explains Gores. Matthias Buck from Agora Energiewende adds that low CO2 prices make climate investments less profitable.
In the short term, the low price postpones investments, but not in the medium term. “Since the absolute amount of CO2 certificates available until 2039 does not change, the short-term lower price does not change the medium-term perspective: that investments are necessary in the transition to a climate-neutral economy,” says Buck. Nothing will change for companies that apply for support through climate protection contracts in the bidding process. Nevertheless, lower CO2 prices mean a greater need for subsidies through climate protection agreements, said Buck.