EU ETS prices will rise with 90% 2040 GHG target

Incoming EU climate commissioner Wopke Hoekstra has defended the target, which has bullish implications for EU ETS prices

Incoming EU climate commissioner Wopke Hoekstra has defended a 90% cut in the EU’s net greenhouse gas (GHG) emissions by 2040, a level of ambition that would have bullish implications for prices in the EU emissions trading scheme (ETS). In written responses to MEPs in the Environment Committee, Hoekstra said the 90% target was based on the recommendations of the European Scientific Advisory Board on Climate Change. “On this basis, we will defend a minimum target of at least 90% net reduction by 2040,” he said. Hoekstra is taking over the role from Maros Sefcovic, who is replacing Frans Timmermans in overseeing the EU’s green policies as a whole, and who has also supported the 90% target.