Estonian Finance minister proposes to leave EU CO2 scheme
Estonian Finance minister Martin Helme has formalized his call for Estonia leaving the European Union’s CO2 trading system by writing to Minister of the Environment and co-party member Rene Kokk.
In his formal letter, which codifies comments Helme made on Monday 6th April, 2020, Helme has asked Rene Kokk to investigate options for Estonia to leave the European Union emissions trading system (ETS), even on a temporary basis. Helme argues that this would lead to reduced electricity prices and as such be a means of mitigating the effects of the coronavirus pandemic.
Helme asked in his letter 1) What steps must be taken to exit the Estonian trading system? and 2) What are the possible consequences of leaving the trading system and their direct and indirect effects on the Estonian state and companies as participants in the trading system?, according to ERR’s online news in Estonian
The Estonian government has already cut electricity prices in an effort to breathe life into the economy, with excise duty now set at the minimum allowed by the European Union. The rate will drop from €4.47/MWh to €1/MWh, which means that consumers will pay 3.1 percent less.
Helme is also asking Kokk to point out the effects on the various areas that are affected by the trading system and whether any other other countries that have raised the issue of leaving the ETS or altering its workings.