S&Ds criticise right for undermining solutions for emissions trading system

Emissions Trading System

The Socialists and Democrats in the European Parliament today criticised the right-wing members of the environment committee for blocking a parliamentary resolution on the state of the European carbon market.
The chairman of the environment committee, S&D Euro MP Matthias Groote, said:
"The conservatives still don't understand how important the Emissions Trading System (ETS) is for the European Union and for the environment. This morning they voted against a draft resolution on structural measures to strengthen the ETS and make it more effective.
"This indecision is so harmful! It is important for everyone in the Parliament to have a clear position to allow certainty for investments in low-carbon technologies. We must act responsibly, particularly in times of crisis and instability.
"Under the ETS, the greenhouse-gas-emissions reduction target of 20% by 2020 will be reached, but because of the financial crisis and the drop in industrial production a surplus of almost two billion allowances had accumulated in the ETS by the end of 2012. We must agree as soon as possible on measures to strengthen the mechanism and that is what the conservatives undermined today.
"But we must also fix the short-term problem of the permits surplus. It is also time that the member states in the EU Council approved the mandate to restart talks with the European Parliament on backloading, to delay the release of some credits to avoid prices dropping excessively. The Parliament voted to support my proposal* in July and we cannot afford to waste more time."
* In July's plenary session, the Parliament voted the amendments to the Commission's proposal suggested by MEP Matthias Groote to postpone auctions of 900 million emissions allowances from the period 2013-2015 to 2019-2020.