AMSTERDAM (Reuters) - The Dutch government on Tuesday proposed a law that would set a minimum price for carbon dioxide emissions by electricity producers from January 2020.
The law, which must be approved by parliament, would supplement the European Union’s Emissions Trading System (ETS), the ministry said in a statement.
The minimum price would go into effect when spot market prices fall below the minimum price to emit one tonne of carbon dioxide, which would be set at 12.30 euros in 2020 and increase to 31.90 euros in 2030.
“The expectation is that the European Union ETS price will not fall under the minimum price in the coming years,” the ministry said.
“With the introduction of the minimum CO2 price, the Netherlands hopes to stimulate other EU member states to adopt a national price regime.”
On Tuesday, European emission allowances were trading at 23.96 euros.
Reporting by Toby Sterling; Editing by Mark Potter