December 6, 2017 / 11:48 AM / a year ago

E.ON's Teyssen says carbon floor price must be raised

BERLIN, Dec 6 (Reuters) - Emitting carbon dioxide under the rules of mandatory EU emissions trading should be made more expensive to encourage meaningful pollution control, the chief executive of German utility E.ON, Johannes Teyssen, said on Wednesday.

* “A CO2 price of under 10 euros ($11.82) (a tonne) does nothing, except encourage bureaucracies. It does not provide any incentive for investments (in low carbon technology),” he told journalists in Berlin.

* “A minimum carbon price is the method of choice,” he said. “It should not just be applied for the sectors that are currently included in emissions trading but everywhere, where CO2 is emitted.”

* Germany is on a long-term track towards decarbonisation of the power and other sectors, that it wants to largely complete by the middle of the century.

* Its reliance on more than 40 percent of highly CO2-emitting coal in the power sector was one focus in recently-failed talks to form a coalition government.

* Teyssen said small EU members should form an alliance of willing countries to push for changes to the emissions trading scheme (ETS).

* The EU ETS covers only half of carbon polluting emissions and leaves out important sectors, failing to help achieve reduction targets. Generous emissions permits handouts to companies in the past have created oversupply and weighed on the price, only recently triggering reform efforts.

* Carbon emissions allowances for Dec 2017 expiry on Wednesday traded 0.1 percent down at 7.42 euros a tonne.

* E.ON from January 2016 split its renewables and services activities from conventional power generation operated by the Uniper unit. ($1 = 0.8462 euros) (Reporting by Reinhard Becker, writing by Vera Eckert, editing by David Evans)

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