ETS backloading: carbon market schemes at a turning point
Plans to freeze the auctioning of some CO2 permits, so as to raise their price and thus encourage firms to invest in low-carbon innovation, will be put to a final vote on Tuesday, after EU ministers endorsed Parliament’s July 2013 proposal setting stricter conditions for the freeze. The aim is to restore the incentive effect of the Emissions Trading System, which is designed to cut greenhouse gas emissions and tackle climate change.
“Our House will have to fulfil a very important responsibility on Tuesday. This is the first time that the Council of Ministers has endorsed a Parliament position without a change. Both EU chambers are on the same line, and it is of the utmost importance that we are consistent and stick to our July position. I have confidence in my colleagues. We can achieve a clear majority”, said Matthias Groote (S&D, DE), who is steering the legislation through Parliament.
“Expectations are very high. Exchanges at the Warsaw climate conference last month highlighted that carbon market schemes are now at a turning point. In order to allow the EU ETS to reach its maturity, we parliamentarians must deliver and let backloading happen” he added.