Merkel Commits to New Renewable Energy Policy

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Oct. 17 (Bloomberg) -- Bloomberg Europe Editor David Tweed reports that German Chancellor Angela Merkel has backed a proposal to address the glut of EU carbon permits. He speaks on Bloomberg Television’s “The Pulse.”

I think it is worth looking at what has happened with the carbon pricing market.

When it came into being, i number of permits were issued.

They were based on the healthy projections.

Even robust projections for economic growth in the eurozone and european union.

What happened since 2008? we know that economic growth collapsed.

The price is 92%. they have recovered.

Others of been trying to come up with a proposal to try to fix the entire carbon market.

More the end result was that you sought chief of permits and coal-fired companies were able to buy those permits cheaply.

And became cheap to emit coal -- more carbon.

Merkel said, and i would point out that it caused a pop-up in the price of benchmarks, she said that we need a degree of that loading of co2 emissions and we can get prices returning to a sensible level.

She said that as ok and that the economic growth rate has not happened.

What is important is that there is a recognition by germany that something needs to be done.

Hopefully, a proposal to move the legislative process.

You talk about the economic growth that sets the metrics.

The famous five economic institutes in germany had their forecast today.

What should we expect?

They, but the top of the hour.

We expect the forecast to come down this year to the bundesbank level.

A slight tweak to the forecast next year.

Institutes are looking or 1.8%. these are important forecasts.

Merkel is arguing that there has been no increase in germany.

The increase in economic growth will be sufficient.

Thank you very much.

Thank you so much.

This text has been automatically generated. It may not be 100% accurate.


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