Germany has long hoped to become a world model for Green alternative energy. But according to an article in Germany’s leading news magazine, Der Spiegel, the country is facing a massive budget shortfall for renewable projects, and is now planning to cancel some key subsidies aimed at increasing reliance on Green power. One of the main problems is that Europe’s cap-and-trade system for carbon emissions has continued to grossly underperform, with prices for CO2 remaining below 5 Euros per ton. Berlin had been counting on revenue from its emissions certificates to pay for its transition away from fossil fuels. So now it appears financial realities are dashing the dreams of a Green energy utopia.
May 6, 2013 by David Rothbard,
David Rothbard is co-founder and President of CFACT.