The European Parliament formally confirmed Wopke Hoekstra in his role as the European Union’s new climate commissioner, a role previously filled by Frans Timmermans. Hoekstra is the former Dutch foreign minister. Furthermore, he used to work at energy giant Shell and was a partner for a decade at McKinsey whose clients include gas and oil companies.

During a Parliament hearing this week, Hoekstra came under pressure amid his past ties to the energy industry. “Looking at your CV until now, you’ve not really been a climate champion. And I think that’s putting it mildly, looking at your Shell history, McKinsey, Minister of Finance where you gave money to KLM,” remarked Bas Eickhout, also a Dutch politician and member of the European Parliament on behalf of the greens.

However, Wopke Hoekstra made a written commitment to “defend a minimum target of at least 90% net reduction by 2040,” which, according to the London Stock Exchange Group (LSGE) would send carbon prices “above €400 by 2040.”

Based on LSGE’s estimates, with the current reduction target of 55% set for 2030, the EUAs are expected to reach €160 by the end of this decade. “The EU’s 90% decarbonization target… will create an emissions trading system that will likely look very different to the ETS we have now,” said Paula VanLaningham, director of LSEG Carbon Research.