The importance of reforming the EU’s Emissions Trading Scheme (ETS) in order to increase the Union’s 2030 climate target was reportedly stressed by several Member States on Wednesday 2 December during a discussion between the Member States’ ambassadors to the EU (Coreper) on the European Council draft conclusions of 10 and 11 December.
Proposed to Member States on 1 December, this first draft of conclusions is intended to endorse the European Commission’s proposal to raise the EU’s net greenhouse gas emission reduction target for 2030 to ‘at least 55%’ below 1990 levels (see EUROPE 12609/15, 12561/5).
The text then calls on the Commission to examine how each economic sector can best contribute to this new objective and to make the necessary proposals.
Among the four suggested measures is the idea of “strengthening the ETS system while preserving its integrity, in particular by strengthening carbon pricing policies”. The document also states that “the Modernisation Fund will address increased investment needs to accelerate the transition to climate neutrality and to modernise energy systems”.
According to our sources, the national delegations have generally welcomed the first draft of the conclusions.
However, several of them reportedly have requested that the text provide more details on the ‘enabling framework’ - the set of instruments, incentives, support, and investments aimed at helping states with the energy transition, taking into account their different starting points - in particular with regard to the revision of the ETS system.
Some Member States have also argued that an increase in the 2030 target should be accompanied by an increase in the Modernisation Fund.
This Fund, provided for by the European Directive (2018/410) revising the ETS, is intended to provide financial support to low-income Member States (those whose GDP per capita at 2013 market prices was less than 60% of the EU average) in their efforts to modernise their energy systems and improve energy efficiency.
It should also be noted that Poland, one of the countries most reluctant to reduce emissions by 55% by 2030, recently presented its proposal for the ETS revision (see EUROPE 12588/2) to the other Member States.
Other Member States would, on the contrary, prefer that the conclusions not contain too many specific elements so as not to prejudge the Commission’s work.
Finally, while some countries, such as Sweden and Denmark, reportedly insisted that a 55% reduction in emissions must be a minimum, Bulgaria reportedly asked to remove the word ‘at least’ in favour of a target set at 55% exactly. (Original version in French by Damien Genicot)