Brussels, 09/12/2013 (Agence Europe) - Almost the last step in a long journey will be taken in Strasbourg on Tuesday 10 December, with the confirmation vote, expected by the European Parliament, on the short-term reform of the emissions quotas trading system (ETS) of the EU.
The plenary session of the European Parliament is expected formally to confirm its agreement on the temporary freeze of up to 900 million surplus quotas at the start of the third trading period of the emissions quotas trading system (ETS) on an exceptional basis. The aim is to try to remedy excessively low prices per tonne of CO2, which has prevented the ETS from playing its full role as an incentive to investment in clean technologies and renewable energies.
On the eve of Parliament's vote, Mathias Groote (S&D, Germany), chair of the parliamentary committee on the environment, stressed what is at stake with this move and said that he was confident that the MEPs would enshrine the sole amendment to the proposed modification of the timetable for the auctions, as voted on in July by the plenary and approved by the ambassadors of the member states (see EUROPE 10967).
“Our House will have to fulfil a very important responsibility on Tuesday. This is the first time that the Council of Ministers has endorsed a Parliament position without a change. Both EU chambers are on the same line, and it is of the utmost importance that we are consistent and stick to our July position. We can achieve a clear majority”, he said on Monday. He added that the temporary and exceptional freeze of 900 million surplus quotas is vital “in order to allow the EU ETS to reach maturity”.
Under the informal agreement negotiated between the Parliament and the Council, the change to the auction timetable is subject to prior assessment of carbon leak risks for certain areas of industrial activity exposed to high risks of relocation, and the European Commission will be able to intervene on the market only once during the third trading period (2013-2020).
If the Parliament formally approves the agreement, all that will remain is for the Council to do the same, in order for the decision modifying Directive 2003/87/EC which created the European carbon market in 2005 to be formally adopted. (AN/transl.fl)