Emissions Trading System: Partial deal reached with Council to include shipping 

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Parliament’s lead negotiator on the EU Emissions Trading System comments on the preliminary agreement.

In a meeting Tuesday evening, MEPs found a preliminarily agreement with the Czech Presidency of the Council of Ministers and the European Commission to include greenhouse gas emissions from the maritime sector in the EU Emissions Trading System (ETS).

After the deal, Parliament’s ETS rapporteur Peter Liese (EPP, DE), said: “It is an important achievement to include ships in the EU ETS because that will encourage ship owners and operators to use the best available technology and to innovate and this will not only help the climate but also improve air pollution in cities close to rivers and the coastline.

Compared to the Commission proposal, we agreed on substantial improvements. First, we include methane and N2O in addition to CO2. Second, we increased the scope by including offshore vessels bigger than 5000 gross tonnage. This will bring a net benefit for the climate of 20 million tonnes of CO2. It will also increase the revenues and 20 million allowances will be earmarked for specific projects in the shipping sector via the Innovation Fund/Climate Investment Fund.

There are still very difficult points to be solved in the ETS negotiations, including free allowances for the industry, the innovation fund, the modernisation fund and the inclusion of heating and road transport in the scheme. I hope it will be possible to find an agreement on these issues in the trilogue meeting 16-17 December.”

Background

The ETS is part of the “Fit for 55 in 2030 package", which is the EU’s plan to reduce greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels in line with the European Climate Law.

The next trilogue meeting on the ETS is scheduled for 16-17 December where negotiators will try to reach an agreement on the outstanding issues.