The Council, European Parliament and European Commission have reached a provisional political deal on reforming the EU Emission Trading Scheme (EU ETS) which resolves a number of critical elements which were widely debated since the beginning of the reform process in 2015.
The draft includes increasing the volume of the Innovation Fund which will promote low carbon technologies.
It also includes an increase of free allowances for industry, which increases the likelihood that the best performing companies will receive the free allocation they need. This is one of the core principles of the EU ETS.
Marco Mensink, Director General of the European Chemical Industry Council, commented: “We congratulate the negotiators for striking a deal that tried to find a balance between a stronger EU ETS and a fair treatment of EU industries.”
EURELECTRIC also welcomes the provisional agreement on EU ETS reform that will strengthen the European carbon market up to 2030 and strongly urges the EU institutions to proceed with its confirmation as soon as possible.
EURELECTRIC is the ‘voice’ of the electricity industry in Europe, with more than 3,500 member companies in power generation, distribution, and supply.
It supports, distortion-free energy and carbon markets as the best way to produce electricity and reduce emissions cost-efficiently and considers that integrated EU-wide electricity and gas markets are also crucial in ensuring the best use of generation resources, improving security of supply and increasing increase customer choice.
Secretary General, Kristian Ruby said: “Investors across Europe have received the much needed legal clarity that will enable them to take better informed decisions on low-carbon investments.
“The deal sends a timely message of EU climate leadership that coincides with the ongoing COP23 climate conference in Bonn. It also restores confidence in the long-term functioning of the EU ETS in time before the entry into operation of the MSR.”
Source: Scottish Energy News0