The European Parliament and Council have today reached a
provisional agreement to revise the EU Emissions Trading System
(EU ETS) for the period after 2020. This revision will contribute
to put the EU on track to achieving a significant part of its
commitment under the Paris Agreement to reduce greenhouse gas
emissions by at least 40% by 2030.
Today's deal between Parliament and Council provides a clear
outcome after more than two years of intensive negotiations,
following the Commission's proposal to revise the EU ETS in
July 2015.
Welcoming the political agreement, Commissioner for Climate
Action and Energy Miguel Arias
Cañete said: "Today's landmark deal
demonstrates that the European Union is turning its Paris
commitment and ambition into concrete action. By putting in
place the necessary legislation to strengthen the EU Emissions
Trading System and deliver on our climate objectives, Europe is
once again leading the way in the fight against climate change.
This legislation will make the European carbon-emissions market
fit for purpose. I welcome in particular the robust carbon
leakage regime that has been agreed and the measures further
strengthening the Market Stability Reserve."
The EU Emissions Trading Scheme puts a cap on the carbon
dioxide (CO2) emitted by more than 11,000 installations in the
power sector and energy intensive industry through a
market-based cap and trade system.
Building on the Commission's proposal, the main improvements
agreed by Parliament and Council include:
- Significant changes to the system in order to speed up
emissions reductions and strengthen the Market Stability
Reserve to speed up the reduction of the current oversupply of
allowances on the carbon market;
- Additional safeguards to provide European industry with
extra protection, if needed, against the risk of carbon
leakage;
- Several support mechanisms to help the industry and the
power sectors meet the innovation and investment challenges of
the transition to a low-carbon economy.
Next steps
Following the political agreement (a 'trilogue' negotiation
between the European Parliament, the Council and the
Commission), the text will have to be formally approved by the
European Parliament and the Council. Once endorsed by both
co-legislators, the revised EU ETS Directive will be published
in the Official Journal of the Union and enters into force 20
days after publication.
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