EU Parliamentary committee agrees set-aside measures for Emissions Trading System

A senior parliamentary committee of MEPs has agreed controversial measures to let the EU Commission cut the supply of carbon permits in the bloc’s ETS, in a bid to prop up CO2 prices lingering below €10, even below €8. The industry committee of the EU Parliament passed an amendment to the Energy Efficiency Directive to allow the EC take measures by the end of the year that “may include withholding of the necessary amount of allowances” from the 2013-2020 phase of the EU carbon market.  Before becoming law the bill still needs approval from the full Parliament and the Council of 27 environment ministers. Sandbag welcomed this move and said politicians must remove at least 1.4bn permits to get the market in carbon to work properly. “Today’s vote is a significant step in that direction.”

 

European Parliament gives mandate for fixing the EU Emissions Trading System

 posted by Damien  (Sandbag)
28th Feb 2012
This morning MEPs in the Industry, Research and Energy Committee gave the Commission a clear mandate to intervene in the EU ETS to correct for the impacts of the Energy Efficiency Directive and to preserve the incentives for low carbon investment.

Sandbag welcomes this development, and hopes to see political support for recalibrating the ETS grow within the parliament and council in the coming months.

Damien Morris, Senior Policy Advisor at Sandbag said, “The EU emissions trading scheme could be a powerful tool for both energy efficiency and low carbon growth in Europe but at present it is dying under the weight of too many emissions permits. Politicians control this market and they can and must fix it by taking away at least 1.4bn permits. Today’s vote is a significant step in that direction.”

http://www.sandbag.org.uk/


 

 

EU Parliamentary committee agrees set-aside measures

Brussels,

28 February 2012 (Commodities Now)

A senior parliamentary committee of MEPs on Tuesday agreed controversial measures to let the EU Commission cut supply of carbon permits in the bloc’s Emissions Trading Scheme in a bid to prop up CO2 prices lingering below 10 euros. The industry committee of the EU Parliament passed an amendment to the Energy Efficiency Directive to allow the EC take measures by the end of the year that “may include withholding of the necessary amount of allowances” from the 2013-2020 phase of the EU carbon market.

Before becoming law the bill still needs approval from the full Parliament and the Council of 27 environment ministers.

“Today’s vote provides a strong mandate for the Parliament in its negotiations with the Council on the final legislation,” said Claude Turmes, the Green MEP who steered the bill through the industry committee, in a statement.

Turmes said the committee agreed text beefs up the bill that is designed to ensure the bloc meets a 2020 target to cut primary energy consumption 20 percent.

The bill seeks to impose binding measures on governments to renovate public buildings and force power companies to cut final energy use 1.5 percent a year.

Just one of the 18 compromise amendments was rejected by the committee, giving the parliament a more unified voice that some observers reckon will strengthen its negotiating hand with member states.

FAST TRACK

The MEPs gave the green light to back a fast-track plan for parliamentary envoys to begin talks with EU governments before a full vote in parliament, increasing the chances that a bill can be made law in the first half of the year.

Denmark, a proponent of strong efficiency measures and chair of discussions between member states, has pledged to complete the bill before its term as holder of the rotating EU presidency expires in July.

But while the bill is slated to be passed before July, it is unclear whether the so-called set-aside provision will survive. Member states are divided on whether to impose extra carbon costs on their industries amid tepid economic growth.

The European Commission is also split on whether to impose a set-aside, despite Climate Commissioner Connie Hedegaard being in favour.

Antonio Tajani, who heads the Commission’s Industry department, on Tuesday cautioned against intervening in the cap-and-trade scheme.

“In the middle of a crisis one cannot demand impossible things from the industry,” said Tajani at a briefing to journalists before the parliamentary committee vote.

“The pricing of allowances should be left to the market. The prices would recover by themselves as soon as the economy would pick up.”

http://www.commodities-now.com/news/environmental-markets/10203-eu-parliamentary-committee-agrees-set-aside-measures.html