A law to strengthen greenhouse gas emission curbs via the EU Emissions Trading System (ETS), so as to begin delivering on Paris climate accord pledges, will be put to a vote on Tuesday.
The draft EU law, already informally agreed with EU ministers, would accelerate the yearly reduction in the quota of ETS emission allowances to be auctioned. It also provides for a doubling of the ETS Market Stability Reserve’s capacity to mop up excess emission allowances on the market.
To promote low-carbon innovation, the law would also establish a “modernisation fund” to help upgrade energy systems in lower-income EU member states and an “innovation fund” to support renewable energy, carbon capture and storage and low-carbon innovation projects.
The EU ETS sets a cap on the total amount of greenhouse gases that can be emitted by the sectors covered by the system. Within the cap, companies receive or buy emission allowances which they can trade with one another as needed.
The EU Commission published its proposal for Phase IV of the ETS on 15 July 2015.
This aims to meet the EU’s 2030 greenhouse gas emissions reduction target of “at least” 40% while protecting EU industry against the risk of carbon “leakage” (emitters moving to third countries with less stringent limits) and promoting innovation and modernisation in the EU’s industrial and power sectors over the decade from 2020.
Debate: Monday 5 February 2018
Procedure: Ordinary legislative procedure, first reading agreement
Press conference: Tuesday or Wednesday at 14h (depending on voting time)