HANOVER, Germany Oct 16 German Chancellor Angela Merkel said on Wednesday that Europe needed a certain degree of backloading for CO2 emissions certificates, showing more explicit support than previously for an EU proposal designed to lift carbon prices.
"We need a degree of backloading of CO2 emissions so that the certificate price can reach a reasonable level again," Merkel said at a union event in the western city of Hanover, ading the European Union also needed a CO2 goal for 2030.
German support for the European Commission's backloading proposal to temporarily withdraw 900 million allowances from the market is crucial for the law to pass. But the plan has stalled due to lengthy negotiations between German political parties about forming a new government after last month's election.
The EU benchmark carbon price was up nearly 8 percent at 5.35 euros a tonne at 1301 GMT, shortly after Merkel's comments.