Price of CO2 key to energy sector efficiency

The EC believes it is vital for G8 countries to provide a clear regulatory framework for renewable energy and push forward with carbon trading initiatives to motivate the energy industry into improving efficiency.

Speaking ahead of a working session of a G8 Energy Ministerial Meeting in Rome this week, European energy commissioner Andris Piebalgs called for an ambitious agreement on carbon trading and regulation at the UN Climate Change Conference in Copenhagen in December.

“Our main tool to drive the energy sector towards a low-carbon system is the price of CO2 in an open market. We have also provided a clear regulatory framework to promote renewable energy sources and energy efficiency," said Piebalgs.

"The commission is also trying to increase its efforts on research for technologies that will help reduce CO2 emissions, such as carbon capture and storage."

In addition, Piebalgs stressed the importance of open and transparent markets which would ensure energy security. He also said dialog between producers and consumers was needed in order to help secure investment in new generation capacity, infrastructures, and the promotion of renewable energies and energy efficiency.

The UN's climate change meeting in Copenhagen aims to agree a follow-up to the Kyoto Protocol.

Organisers have already released documentation ahead of the event detailing new medium-term emission targets for industrialised countries and proposals to reform UN-backed carbon trading mechanisms to include forestry and land-use projects.

G8 members include Canada, France, Germany, Italy, Japan, Russia, the UK and the US.