S&Ds support extraordinary measure to save EU carbon market system

Green house gas

Today the plenary of the European Parliament backed a proposal to stabilise the EU Emissions Trading Scheme (ETS) by delaying the auctioning of surplus allowances.

The chairman of the parliamentary environment committee, S&D MEP Matthias Groote, negotiated a proposal which was passed by the Parliament last July. EU governments subsequently endorsed the Parliament's proposal in the Council without any changes and today the Parliament held its final vote.

S&D MEP Matthias Groote said:

“The Parliament lived up to a very important responsibility today. This is the first time that the Council of Ministers has backed a position from the Parliament without a change.

"It is important to react fast to the current troubles of the ETS in order to stabilise the system and to bring certainty for investors in clean and innovative technologies. The EU is a leading global player in fighting climate change and switching to smart economic growth. The vote today is an important signal that we intend to live up to this responsibility and to keep leading.

“The world is looking at Europe. In fact, many countries are considering adopting a carbon market scheme. We can lead by example here, and show the outside world that the system works, even if we still need to correct some shortcomings that we found along the way."

The proposal will allow for an adaptation of the timing of auctions, but only once an impact assessment of the sectors concerned has been presented and only once in the third phase of the ETS. The volume and timing of the so-called 'back-loading' of permits will be limited to a maximum of 900 million allowances.

The decision still needs the final approval by EU governments.