With these emission rights, polluting companies buy permission to emit more greenhouse gases. Timmermans hopes to raise 20 billion euros with this. The money should be used to provide a green alternative to Russian fossil fuels.
Germany, Denmark, Luxembourg, Ireland, Austria and Finland immediately flare up the plan. They find it strange to pump more CO2 emissions into the air for a green purpose.
Minced meat
The Hague is also making mincemeat of the plan. “We do not think it is a good idea to spend extra CO2 rights to raise money,” says climate minister Rob Jetten. “This leads to more emissions and gets in the way of a properly functioning CO2 emissions trading system.”
There is a fear that adding more CO2 allowances will lead to a fall in prices. This would lower the price for pollution. Brussels thinks it will all be okay. Whether that is correct is doubtful: the announcement of Timmermans alone immediately caused a price drop.
The PvdA prominent does not agree with the criticism. He believes that the plan will not have a negative effect on achieving the 2030 climate goals.
Brussels wants to put the proceeds of the safe into the corona recovery fund. The executive board of the EU wants to partly convert this fund into an energy fund. Due to the favorable distribution key for Southern Europe, the Netherlands does not have to count on a large part of the pie.