Gallier, Carlo Lutz, Benjamin Brockmann, Karl Ludwig Dieckhöner, Caroline
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KfW/ZEW CO2 Barometer
The KfW/ZEW-CO2-Barometer – developed as part of a cooperation project of KfW Bankengruppe and the Centre for European Economic Research (ZEW) – has been analysing the situation of the German companies regulated under the European Union Emissions Trading System (EU ETS) on an annual basis since 2009. The study’s objective is to closely monitor firm behaviour in carbon markets in order to provide detailed information for policy-makers, businesses, and the research community. For that purpose, all German firms regulated under the EU ETS are invited to participate in the survey every year. On average, approximately 140 companies of 800 have responded to the questionnaire per year. The results are reported in an annual publication, the KfW/ZEW-CO2-Barometer – Carbon Edition. Main Results of the Survey: At the Beginning of the Third Trading Period Persistently Low CO2 Prices Barely Lead to CO2 Abatement Measures. The Price of Emission Allowances Needs to Be About EUR 30 per tCO2, i.e. Six Times Higher than the Average Price in 2013, to Incentivise Companies to Abate CO2. CO2 Abatement Remains a Side-Effect of Efficiency Improvements that Would Have Been Carried out Anyway. The Trading Activities of Regulated Companies Are Constantly Increasing.