Presentation of the Carbon Price Report to Ségolène Royal

On Monday, July 11, Ségolène Royal, President of COP21, received the findings of the Canfin-Grandjean-Mestrallet mission’s report on carbon pricing.

In the wake of COP21, Ségolène Royal commissioned a study by Alain Grandjean (Carbone 4), Pascal Canfin (WWF France), and Gérard Mestrallet (Engie) to study the implementation of a carbon price at the European level with a view to achieving the goals set by COP21 to limit global warming to below 2°C by 2050.

The report highlights the importance of carbon pricing: “Carbon pricing is essential for accelerating the energy transition and promoting the development of a low-carbon economy. To have a real impact on economic actors, investments, and behavior, carbon prices must be effective, stable, and predictable, and cover the broadest possible scope.”

To complement the current European emissions trading system, the report recommends the establishment ofa carbon price corridor at the European level, with a floor price of between 20 and 30 euros per metric ton of CO2 in 2020 and a ceiling price of 50 euros per metric ton of CO2 in 2020; both of these prices would increase annually by between 5% and 10% so that the floor price reaches at least 50 euros by 2030.

The report also outlines proposals for implementing the commitment made by the President of the Republic on April 25 during his opening address at the Environmental Conference to establish a minimum CO2 price in France in order to accelerate the phase-out of coal.

This mission follows the task force on innovative financing commissioned last year by François Hollande to Pascal Canfin and Alain Grandjean, one of whose proposed measures was the establishment of a carbon price corridor.

Download the report and learn about the 10 actionable recommendations

In the News:

• Le Monde, July 12, 2016 : "Global Warming: A Report Recommends Raising the Cost of CO2 Emissions"
• Novethic, July 12, 2016 : "Climate: 10 Proposals to Revive the Carbon Price"
• BatiActu, July 12, 2016 : "A carbon tax to phase out coal from French power plants"
• Metronews, July 12, 2016 : "Global Warming: What Does It Mean to Set a Minimum Price for Carbon?"
• La Tribune, July 11, 2016: "France wants to exempt gas-fired power plants from a carbon price floor"
• Les Echos, July 12, 2016 : "Carbon Price: Paris Aims for 1 Billion Euros"
• L'Argus, July 12, 2016 : "EU Needs a Higher CO2 Tax to Meet Climate Goals: Q&A"
• BFM Business, July 11, 2016: "The carbon floor price will apply only to coal-fired power plants."