MEPs propose tighter ETS rules

19th January 2017

Related Topics

Related tags

  • Mitigation ,
  • Reporting ,
  • Carbon Trading ,
  • Politics & Economics


Charles Obinor

The European parliament environment committee has backed plans to tighten the EU emissions trading system (ETS) from 2020.

They include reducing the number of allowances to be auctioned each year and doubling the capacity of the market stability reserve (MSR) to absorb excess credits. The European Commission had sought a 2.2% increase in the so-called ‘linear reduction factor’, the yearly contraction in credits available for auction.

MEPs have proposed a 2.4% rise. Under their proposals, when the MSR is triggered from 2019, it would absorb up to 24% of the excess of credits in each auctioning year, for the first four years, which is double the current capacity. MEPs also agreed to remove 800 million allowances from the MSR from 1 January 2021.

Conservative MEP and ETS rapporteur Ian Duncan said: ‘We have endorsed an agreement that honours the EU’s Paris commitments, while also protecting vital industries. The journey has not always been easy but the commitment of my fellow MEPs who negotiated the dossier has been unstinting.’

The committee backed measures to account for emissions from shipping and aviation. MEPs want carbon emissions in EU ports and during voyages to and from them to be accounted for, while revenues from auctioning of allowances in the aviation sector would be used for climate action in the EU and countries outside the bloc.

The proposed legislation will be put to a vote of parliament in February.

Meanwhile, a study for Carbon Market Watch has found that heavy industry in 20 European countries made more than €25bn in ‘windfall profits’ from the ETS between 2008 and 2015. According to the report, iron and steel made €8.4bn, the cement sector €5bn, refineries €4.6bn and the petrochemical industry €1.7bn.

Transform articles

Power struggle: Central government and local authorities

Devolving power from central government to local authorities will be critical for the UK as it looks to deliver on its environmental targets. Chris Seekings reports

23rd September 2021

Read more

The UK government has been “too city-focused” in its climate action and must provide more funding and support to reduce emissions in rural areas, the County Councils Network (CCN) has said.

22nd September 2021

Read more

COVID-19 offers the world a huge chance to beat a path to sustainability, says Oxford University professor Ian Goldin – but we must learn from past crises, he tells Huw Morris

30th July 2021

Read more

The UK’s pipeline for renewable energy projects could mitigate 90% of job losses caused by COVID-19 and help deliver the government’s ‘levelling up’ agenda. That is according to a recent report from consultancy EY-Parthenon, which outlines how the UK’s £108bn “visible pipeline” of investible renewable energy projects could create 625,000 jobs.

30th July 2021

Read more

The UK's largest defined benefit (DB) pension schemes have received a letter from the Make My Money Matter campaign urging them to set net-zero emission targets ahead of the COP26 climate summit later this year.

26th July 2021

Read more

The total cost of waste crime in England has increased by 53% in just three years, and now costs the country nearly £1bn annually, a recent study has uncovered.

23rd July 2021

Read more

The oil and gas industry is set to burn through its allocated carbon budget 13 years early unless decisive action is taken immediately, new analysis has found.

22nd July 2021

Read more

Public money spent rescuing economies from the impact of COVID-19 is set to do more harm than good to the environment, new research suggests.

16th July 2021

Read more

The sale of new diesel and petrol heavy goods vehicles (HGVs) will be banned in the UK by 2040 under proposals unveiled in the government's transport decarbonisation plan yesterday.

15th July 2021

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert