A massive reduction of greenhouse gases can only take place in a properly functioning EU carbon market. A price floor for the traded carbon permits would reduce the current uncertainty of market participants, improve their price expectations, and thereby reestablish the credibility of the market.
![MCC Policy brief: Carbon price floor to reform emissions trading MCC Policy brief: Carbon price floor to reform emissions trading](https://www.pik-potsdam.de/en/institute/departments/climate-economics-and-policy/mcc-archive/mcc-news-1568/@@images/image.jpeg)
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