Situation on CO2 market calls for EC's intervention - Polish minister

The current situation on the EU emission allowances market (EU ETS) and the rally in EU ETS prices should be a cause for concern for the European Commission, which should consider intervention, Polish Energy Minister Krzysztof Tchórzewski told PAP.

The prices of CO2 emission allowances are the highest in a decade, with the EU ETS benchmark contract topping EUR 25 per tonne of CO2 on the London Stock Exchange on Monday. Year to date, the prices of emission allowances went up by some 200 percent.

Minister Tchórzewski said he would ask the EC about the reasons behind the CO2 price increases.

"The situation calls for intervention. We need to ask the European Commission to look into it," Tchórzewski told PAP.

"The price of CO2 will soon reach PLN 100 (EUR 23.21), whereas just a while ago it was PLN 25 (EUR 5.80). For the time being, (Polish) society is not affected and neither is the power sector for the next year," the minister added.

According to Tchórzewski, there are big companies in some EU countries that may be buying out emission allowances in advance, so as to dictate prices.