If the European emissions trading system is not reformed to work efficiently, a Nordic carbon price floor could be introduced to secure future green investments in the region, according to a new strategic review of energy co-operation by the Nordic Council.

The plan, which has been in preparation for over a year, is penned by Finnish businessman Jorma Ollila, who had formerly chaired Royal Dutch Shell for almost ten years and was the chairman and CEO of Nokia.

It comes at a crucial time, just as the final talks on reforming the EU’s carbon trading scheme are due to take place in Brussels.

On Tuesday (27 June), representatives of the EU member states, the European Parliament and the European Commission met for one of the final meetings on how the EU’s flagship climate instrument – the EU Emissions Trading System (EU ETS) – should look in the 2021-2030 period.

But before the real talks have even started, hopes of reforming the EU system to work efficiently are fading.

”I think everyone realises that this is not enough. The [EU] proposal will not deliver a carbon price that we need to decarbonise the industry sectors,” said Femke de Jong, EU policy director for Carbon Market Watch.

Her organisation brings together more than 800 NGOs and academics from 70 different countries, working to make the carbon market “an effective climate mitigation tool.”