Developments affecting the EU Emissions Trading System

19.2.2015

Question for written answer E-002580-15
to the Commission
Rule 130
Luděk Niedermayer (PPE)

The EU Emissions Trading System (EU ETS) is facing the following situation:

• —there is a large surplus of allowances on the market;
• —the price of allowances is very low and most likely does not support investments in decarbonisation;
• —verified emissions in the EU have been stagnating since 2009, and the economy remains weak.

It seems to me that, in the light of these developments, a gradual adjustment of the economy (in this case, the ETS sector) with a view to lowering CO₂ levels, as agreed and set out in targets for the decades ahead, is under threat. In addition, ‘stop-start’ policies are often more expensive.

— Is the EU ETS still considered the key tool for reaching CO₂ reduction targets in the EU?— In the light of this state of affairs, what was the logic behind the Commission’s proposal to establish a Market Stability Reserve in 2021 (with the x-2 rule) and not before, when it is clear that this delay may considerably prolong the current situation?