Parliament to vote on CO2 market reform deal
Parliament votes on Wednesday on a reform of the EU Emissions Trading Scheme (ETS), informally agreed with the Latvian Presidency of the Council. The reform aims to reduce the surplus of carbon credits available for trading in order to support the price of the emission rights. The scheme would start operating in 2019.
The proposed law would create a system that automatically takes a portion of ETS allowances off the market and puts it into a reserve if the surplus exceeds a certain threshold. In the opposite scenario, allowances could be returned to the market. The surplus of emission allowances, which has been building up in the system since 2009, is estimated at over 2 billion.
The Market Stability Reserve would start operating earlier than initially foreseen, on 1 January 2019, rather than 2021 as proposed by the European Commission.
Procedure: co-decision (Ordinary Legislative Procedure), first reading agreement
Debate: Tuesday, 7 July
Vote: Wednesday, 8 July
Press conference TBC
#EUETS #MSR #emissions