A dozen or so European environment ministers, speaking at their sectoral council meeting on Tuesday 16 December, welcomed the European Commission’s proposed revision of the market stability reserve for the new Emissions Trading System extended to the building and road transport sectors (ETS2) (see EUROPE 13761/2).
The Commission proposed this revision on 27 November, following a letter drafted by 19 Member States (see EUROPE 13667/12), in order to “ensure that the market stability reserve reacts more strongly if the price of emission allowances under the ETS2 exceeds a certain level”. It can also operate beyond 2030.
Although France welcomes the initiative, it considers that it is necessary to go further and propose a mechanism to control price volatility by setting a floor price and a ceiling price for future emission allowances under the ETS2.
Several countries, such as Germany, have also stressed that although the postponement of ETS2 by one year (to 2028) has been approved (see EUROPE 13770/1), it is necessary to “make the system acceptable to all Member States so that they can also defend it politically”.
Belgium, for its part, wondered how the Commission assessed the impact of the postponement of ETS2 on the financing of the Social Climate Fund, given that the revenue from ETS2 is its main source of funding.
In an information note, Hungary, Slovakia and the Czech Republic advocated postponing the system until at least 2030. Poland and Estonia are also in favour of a further postponement. (Original version in French by Pauline Denys)