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EU Carbon Fix That Boosts Power Prices ‘Stupid,’ UBS Says

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A European Commission proposal to boost carbon prices as a way to spur investment in clean energy technology is misguided because it would push power costs to “unacceptable” levels, according to a UBS AG analyst.

“That viewpoint is rather stupid, because we need to get the carbon price to at least 25 euros ($32) a metric ton for it to stimulate emissions savings,” Per Lekander in Paris wrote in an e-mailed response to questions. “Such a carbon price would increase the German wholesale electricity price by 50 percent and thus it wouldn’t be acceptable.”