Poland’s Minister of Climate and Environment, Michal Kurtyka, sent a letter to the European Commission on 18 March asking the institution to look into the functioning of the EU Emissions Trading Scheme (EU ETS) following the recent sharp rise in carbon prices.
“Bearing in mind the concerns of our entrepreneurs [about the increase in the price of emission allowances] as well as the purpose of the EU ETS (...), Poland calls upon the European Commission to investigate this matter and take appropriate measures including changes to the EU ETS and other directives”, writes the Polish minister.
According to Kurtyka, “high volatility of EU allowance prices and the resulting need for constant updates of price forecasts negatively affects planning of the investment process” and may hamper the transition to a low-carbon economy.
Uncertainty about the inclusion of the road transport and construction sectors
The letter comes as the Commission is expected to present a proposal for a revision of the ETS as part of its ‘Fit for 55’ package of legislative initiatives due in June.
In particular, the institution intends to propose extending the ETS to the maritime sector, as well as reducing the free allowances allocated to air operators.
However, it does not seem to have decided on the inclusion of the road transport and construction sectors in this system.
In a speech on 25 March (https://bit.ly/3fgkUsY ), EU Energy Commissioner Kadri Simson said that the ‘Fit for 55’ package’ “proposes the extension of the Emission Trading Scheme to sectors such as building and road transport”.
However, on the same day, the Commission’s executive vice-president in charge of the European Green Deal, Frans Timmermans, indicated that the issue was still “being analysed”, during a video conference organised by Eurogas.
When contacted by EUROPE, a Commission spokesperson assured us that no decision on this issue has been taken at this stage. (Original version in French by Damien Genicot)