France pitches CO2 ‘price corridor’ for Emissions Trading System

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🗞️ Driving the news: France has proposed introducing a CO₂ “price corridor” within the EU Emissions Trading System (ETS) to ensure greater price stability and predictability
• The corridor would set minimum and maximum CO₂ price thresholds
• Paris argues that such a mechanism is “essential” for guiding long-term low-carbon investments

🔭 The context: The EU ETS is the bloc’s flagship carbon market, covering major polluting sectors such as power generation, industry, and aviation
• Recent volatility in CO₂ prices has raised concerns about the system’s reliability for climate planning
• France’s proposal aims to strengthen investor confidence and accelerate the green transition

🌍 Why it matters for the planet: Stable carbon pricing encourages industries to reduce emissions and adopt cleaner technologies
• A predictable price signal could help meet EU climate targets by promoting consistent decarbonisation efforts
• France’s push reflects a broader effort to enhance the ETS’s climate effectiveness

⏭️ What's next: France will present its proposal to other EU member states and the European Commission • The debate may influence upcoming reforms to the ETS and shape the bloc’s climate financing landscape
• Broader consensus will be needed for legislative adoption

💬 One quote: “We consider it essential to send a clear and predictable price signal for carbon in order to guide investments and avoid market speculation.” — Agnès Pannier-Runacher, French Minister for Ecological Transition

📈 One stat: The EU Emissions Trading System covers around 40% of the EU's total greenhouse gas emissions, making it the largest carbon market in the world

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