The negotiators of the European Parliament and the Estonian Presidency of the Council will meet on 8 November for a fifth round of inter-institutional negotiations on the long-term reform of the EU's emissions trading system (ETS) for the period 2021-2030.
“This could be the last one”, a European source told EUROPE on Friday 3 November, adding that there was no new negotiation mandate. The representatives of the member states, to which the Estonian Presidency reported back the results of the trialogue of 12 October, gave their green light on 18 October to the continuation of negotiations, in the hope that they will be conclusive.
The three key elements of the proposal - reinforcing the ETS, protection against carbon leakage and the Solidarity Funds (modernisation fund and innovation fund) - will be discussed once more on 8 November.
The operational rules of the modernisation fund, reserved for the less wealthy countries of the EU (GDP of less than 60% of European average) to help them to update their electricity sectors, and the level of this fund will be central to the talks.
The point concerning the emission performance standards (EPS) of certain projects eligible for this fund was a stumbling block to the negotiators in the previous trialogue round, which went on until late in the night.
The Parliament, which does not want the modernisation fund to allow investments in modernising coal-fired electricity power stations, wanted to impose a limit on the emissions levels of certain projects in order to qualify for funding, but the Council could not agree to this stipulation.
They will have to resolve this issue, bearing in mind the fact that certain member states (Germany, Denmark, France, Luxembourg, the Netherlands, the United Kingdom and Sweden) are in favour of making a gesture to the European Parliament.
If the negotiators are successful on 8 November, this will allow the EU to announce a provisional agreement during the ministerial section of COP 23 to be held in Bonn (13-17 November) (see other article). (Original version in French by Aminata Niang)