S&Ds welcome deal to save the EU's Emission Trading System (ETS)
Today the European Parliament gave the green light to the European Commission to delay the issuing of C02 emissions allowances, the so-called "backloading", as an exceptional measure to readjust the Emissions Trading System (ETS).
The compromise passed today gives the Commission less room for manoeuvre than an earlier proposal rejected by the Parliament in April. The Commission can only withhold the auctioning of 900 million allowances for a maximum of one year, after which it should bring them back to the market.
The Socialists and Democrats support the deal because it will temporarily correct the imbalances in the market caused by the surplus of allowances and the dramatic drop in the price of permits.
The author of the parliamentary report on the issue and chairman of the environment committee, S&D Euro MP Matthias Groote, said:
"This was the best deal possible to save the ETS before we engage in a long-term reform of the system. The vote today brings certainty to the markets and avoids the EU missing its carbon reduction targets.
"The ETS is the cornerstone of the EU's climate policy and it has proven to be effective before the economic crisis and the downturn in production. Since 2008, emissions have already been reduced by more than 10%.
"Many EU industries have invested in clean technologies and we must send a clear signal that this is the kind of economic growth that we want to promote in Europe to be competitive in the world. We are all for job creation in sustainable energy and industry. It is not detrimental to EU companies, but rather an investment in future generations."
S&D spokesperson on the environment, Euro MP Linda McAvan said:
"The ETS has some shortcomings, but it has already helped the EU bring down its emissions and it is taken as an example by other regions of the world.
"There is no way back in the EU's transition to a low-carbon economy. Today's vote reinforces the EU in the eyes of international partners with whom it will have to negotiate a global climate deal in the autumn."