French energy minister calls for higher carbon pricing

The French Minister for Ecology, Sustainable Development and Energy, Segolene Royal, has called for higher carbon pricing to promote clean technology at a United Nations meeting of investors.

Royal addressed participants at the meeting including former US Vice President Al Gore and former New York mayor Michael Bloomberg saying: "We need a carbon price, to give companies the ability to manage the long term cost (of climate change) and give them an incentive to invest."

Carbon pricing is designed to encourage emitters to reduce the amount of greenhouse gas emissions they produce by charging and focussing on research & develop of clean technology.

Ms Royal said that a universal carbon pricing system would not be realistic but a "price window" should be established with a maximum and minimum rate.

Ms Royal added that in Europe, the current carbon price of €8 per tonne was too low, and she suggested that a rate of €15 should set as the minimum.

Addressing delegates at the meeting, Ms Royal said: "The challenge is to drive up the price per tonne of CO2, which is currently too low at €8 per tonne."

France has set a price of €22 per tonne of carbon and this is scheduled to increase to €100 by 2030.

Royal, who been Minister for Ecology, Sustainable Development and Energy since April 2014, said that falling oil prices could provide a boost to companies transitioning to cleaner technologies.

"With lower oil prices, we are at the perfect moment to introduce a carbon price. It will be more readily accepted," she said.