The European Parliament’s Industry, Research and Energy Committee today adopted its legislative opinion on the reform of the EU’s Emissions Trading Scheme. The report, drafted by a Liberal and Democrat MEP, proposes a series of reforms to ensure the next phase of the ETS helps to deliver on the goals of the Paris agreement on climate change ratified last week and the EU’s own 2030 climate change targets.
The opinion secures, as proposed by the ALDE Group, a stronger Innovation Fund with scaled-up means to leverage private investments in breakthrough industrial technologies. The adopted text calls for a continuation of the free allocation of allowances as an exemption to the general rule, in order to prevent carbon leakage. The 10% best performing installations should receive 100% of their allowances free, to keep a reward for best performers.
The ALDE Group calls on the European Commission and Member States must explore options to keep the administrative burdens of the ETS under control
Commenting after the vote today, Fredrick Federley MEP, rapporteur, commented;
“I welcome the clear support shown for this report in the Industry Committee and I now look forward to working closely with colleagues across the Parliament to help deliver an ambitious text ahead of the final plenary vote and subsequent negotiations with EU Governments.
”The ETS currently fails to promote low-carbon investments and innovation on the scale needed to achieve the medium and long term climate objectives – we must reform the ETS to change this, whilst working with the business community to reduce the administrative burdens of the scheme. Liberals and Democrats have pushed hard for a stronger innovation fund to harness private investments for breakthrough low-carbon technologies.”
“The European Parliament last week ratified the Paris climate agreement, so it’s vital the reform of the EU emissions trading scheme matches this ambition and reflects the EU’s own climate targets. This is why we need to establish an EU ETS ratchet up mechanism that makes it possible to regularly revise carbon leakage provisions and the level of ambition. The EU must deliver on its promises to deliver a low carbon economy, while ensuring the competitiveness of European industries.”