State plans to collect €411 million from CO2 emissions allowances this year
The state budget strategy reveals that the sale of emissions allowances (EUA) under the EU Emissions Trading System (ETS) is expected to generate €411.27 million this year, which is about €80 million more than previous year.
Last year, the EU greenhouse gas emission allowance trading system generated €333.25 million in regular auction revenue for the state budget, according to figures supplied by the Ministry of Environment.
A bit more than €768,000 was made at aviation auctions. This is €2 million higher than the €331.05 million anticipated in the Ministry of Finance's summer economic projection.
The predicted income increase for this year is based on both an increase in emissions allowance pricing and an increase in emissions.
Participants in the emissions trading scheme were required to pay an average price of €79.2 per ton of carbon last year; this year, the average price is expected to rise to €90.8 per ton of carbon.
Last year, members of Estonia's emissions trading system (ETS) emitted 4.2 million tons of carbon dioxide, with emissions expected to exceed 4.5 million tons this year.
The Ministry of Finance explained that at least 50 percent of the money from the regular auction must be used to meet climate and energy policy goals, while the whole amount from the aviation auction will be used to meet climate objectives.
During the current budget period, it is anticipated that the largest amount will be allocated to mitigate the increase in energy prices for vulnerable households, €154,2 million; to improve the energy efficiency of public buildings, €110 million; to support research and development in energy efficiency and clean technologies, including hydrogen projects, €57,2 million; to acquire additional electric trains, €51 million.
The price of CO2 in the emissions trading system surpassed €100 per ton on Tuesday, a record high.
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Editor: Mait Ots, Kristina Kersa