France and Germany seek agreement on EU carbon market reform by November

FILE PHOTO: Brune Poirson, French Minister of State attached to the Minister of Ecological and Social Transition leaves after attending the first government meeting after the summer break at the Elysee Palace in Paris, France August 28, 2017. REUTERS/Charles Platiau

PARIS (Reuters) - France and Germany will work together on measures to reinforce carbon pricing in the European electricity sector and want an agreement on the European Union’s carbon market reform by November, France’s ecology ministry said on Monday.

The two countries have renewed their commitment to jointly promote Europe’s energy transition to more renewable power, the ministry said in a statement after a visit by French junior Ecology Minister Brune Poirson to her German counterparts.

The statement added that the countries will experiment on common renewable energy tenders.

After meeting Rainer Baake, the German state secretary for energy, Poirson met environment secretary Jochen Flasbarth.

A joint statement said that France and Germany want an agreement on the European Emissions Trading System (ETS) carbon market ahead of a November climate change conference in Bonn, first targeting a political agreement between EU member states next month on European regulations for CO2-reduction tools in non-ETS sectors.

The ETS is meant to be the European Union’s prime tool for implementing cuts in carbon emissions, but since the financial crisis of 2007-08 prices have tumbled from highs of more than 30 euros a tonne because of excess supply of permits.

The December 2017 expiry EU carbon allowances , which coal-fired power generators must hold for their emissions, were up 1.54 percent at 5.92 euros a tonne on Monday.

“We are convinced that a reliable regulatory framework at European level, integrating ambitious targets for energy efficiency and renewable energy, is the cornerstone of the successful energy transition for both our countries and for the European Union in general,” the ministers said.

Reporting by Bate Felix; Editing by Ingrid Melander and David Goodman