European Parliament and Council negotiators are still some way off agreement on the structural reform of the ETS for the 2021-2030 period, the EU’s main market instrument for achieving its climate targets at the lowest possible cost. The second inter-institutional negotiating meeting, on Tuesday 27 June, was long but inconclusive and it is already being taken as read that the incoming Estonian Presidency of the Council will have much to do on this issue this summer.
The meeting, the first with the Parliament’s new chief negotiator, Julie Girling (ECR, UK), came a month after it was initially scheduled (see EUROPE 11815) and Girling set out the Parliament’s general position. The first trialogue meeting took place on 4 April (see EUROPE 11761).
This second trialogue allowed the two sides to present and explain their respective positions on the three most important points: strengthening the ETS, protecting against carbon leakage, and solidarity funds, including the modernisation fund (see EUROPE 11735 and 11726). At this stage, however, no progress has been made, with each side sticking to its position and everyone aware that altering even a single figure could change the balance of the reform which seeks to make the ETS more effective and to raise the price of carbon per tonne in the EU.
The positions of the Parliament and the Council differ on the compensation for indirect carbon costs and on the potential percentage reduction in quotas up for auction against free allowances.
“More political will needed”, tweeted Climate Action and Energy Commissioner Miguel Arias Cañete on Wednesday evening, summarising the situation.
Negotiators have agreed to give themselves two weeks to identify the points on which they might have some movement. A further trialogue meeting will take place in two weeks’ time, possibly on 10 July “to provide political direction for the technical work that will be done during the summer”, a diplomatic source told EUROPE.
Another trialogue could be held in the autumn but no date has yet been set and there is nothing to suggest that it will be the last. The goal remains to reach agreement before COP 23 (Bonn, 6-17 November, under Fijian chairmanship). With this agreement and the general approach that is hoped will come from the October Environment Council (possibly on 13) on effort-sharing among member states in reducing emissions from non-ETS sectors (see EUROPE 11811), “the EU could go into COP 23 showing that it is taking action”, said our source. (Original version in French by Aminata Niang)