Early Tuesday morning the European Parliament, the European Commission and the
Council of Ministers have achieved a breakthrough in the reform of the Emissions
Trading Scheme. During the final negotiations on the energy efficiency
directive, the EU Commission presented a statement introducing their solution of
the current problems.The Emissions Trading Scheme is the core of the European climate policy. With a price on CO2, the participants especially the electricity producer and the energy intensive industry, should be encouraged to invest in low-CO2 technologies. Due to a large amount of free allowances and due to the economic crisis there has been a large over-allocation of allowances, which led to a sharp fall in the allowance price below 10 EUR (When the reform of the emissions trading system was adopted in 2008 the EU has assumed a price of 30 Euros).
Due to the low CO2 price, there are very few incentives to invest in CO2-free technologies.
Several member states have also a problem because
their energy policy is based on the revenues of the ETS. "Some member
states have chosen to use revenues from the emissions
trading to promote energy system transformation goals for example the insulation
of buildings.
However, if the price is too low there will be consequently a low
income. Therefore, a reform is urgently needed," said Peter Liese, rapporteur of
the energy efficiency directive in the ENVI
Committee.
In the negotiations on the Energy Efficiency Directive, the Parliament insisted on a reform of the Emissions Trading Scheme. Therefore, the Commission has clarified in a statement what they are intend to do. In the short term, this means in the next few weeks, a report is to be submitted, which includes a proposal how to reform the auctioning.
In practice this means that at the beginning of the next year, a lower amount of allowances is going to be auctioned as originally planned. Thus, a higher price can be achieved. This proposal can be accepted in the so-called Comitology procedure by a committee of the European Commission and experts from the member states. Under this procedure unanimity is not required and the proposal can be accepted in a few weeks.
In addition, structural changes regarding the emissions trading are being investigated and proposed as soon as possible. Options are a permanent removal of allowances from the market or a change in the climate target (several member states propose an increase from 20 to 25 percent).
According to Liese, rapporteur of the energy efficiency directive in the ENVI Committee, "Europe does not regulate the way as to how we can save energy, but the target". Liese expressed his gratitude for a good cooperation especially to the Industry Committee and in particular to the EPP negotiator Dr Markus Pieper.
In the negotiations on the Energy Efficiency Directive, the Parliament insisted on a reform of the Emissions Trading Scheme. Therefore, the Commission has clarified in a statement what they are intend to do. In the short term, this means in the next few weeks, a report is to be submitted, which includes a proposal how to reform the auctioning.
In practice this means that at the beginning of the next year, a lower amount of allowances is going to be auctioned as originally planned. Thus, a higher price can be achieved. This proposal can be accepted in the so-called Comitology procedure by a committee of the European Commission and experts from the member states. Under this procedure unanimity is not required and the proposal can be accepted in a few weeks.
In addition, structural changes regarding the emissions trading are being investigated and proposed as soon as possible. Options are a permanent removal of allowances from the market or a change in the climate target (several member states propose an increase from 20 to 25 percent).
According to Liese, rapporteur of the energy efficiency directive in the ENVI Committee, "Europe does not regulate the way as to how we can save energy, but the target". Liese expressed his gratitude for a good cooperation especially to the Industry Committee and in particular to the EPP negotiator Dr Markus Pieper.
No comments:
Post a Comment