"The approval of most of my colleagues in the Environment Committee to my report on emissions trading is good for the climate, for jobs and for people," said the environment spokesman for the largest group in the European Parliament (EPP, Christian Democrats) in view of the final vote on the reform of the European emissions trading system. The report was adopted by 62 votes (62/20/5).
“I consider it a great success that companies that invest in climate-friendly technologies and thus secure jobs in Europe in the long term will get a tailwind. They are to receive not only financial resources from the Climate Investment Fund (previously the Innovation Fund), but also free certificates. "We have decided on three different mechanisms for this. In return, however, it will be very hard for those who want to continue operating old dirty plants. Anyone in Europe who does not invest in climate neutrality, has no future and should not be supported by the EU," Liese said.
MEPs also decided by a large majority to include waste incineration in the ETS system after an impact assessment in 2025.
Read more: Emissions trading reform: adoption of report in the Environment Committee with 62 votes
"This compromise will help to save our planet but at the same time protect European jobs and protect people from excessive prices.” This is the comment of the main negotiator (Rapporteur) on the EU ETS Peter Liese after a breakthrough in the negotiations with the other political groups. Liese explained that he managed to improve the Commission proposal when it comes to support for innovative industries. His colleagues accepted his so called bonus-malus-system which means that companies that are emitting much less than others in their sector, will get additional allowances but those that are emitting much more and don’t do efforts to decarbonise, will have to pay a much higher bill in the next years. The Innovation Fund, which was already proposed for a significant increase by the European Commission, will get even bigger. Additional 50 million allowance will be auctioned for this purpose.
A compromise was also reached on the so-called ETS II for road transport and heating. Liese succeeded in his effort to introduce this scheme as soon as possible for commercial operators. He had to give in because of resistance from the other groups on the private sector. The private sector will only be included in 2029 and also only if specific conditions are met and the Parliament agrees again to a new proposal after 2026. "This part of the compromise is painful but it is the spirit of a compromise that you give and take. While I am disappointed that I could not get an earlier date I am happy with the other measures that we agreed upon: a price cap, a limitation of the cost pass through to big oil companies an earlier start of the Social Climate Fund. The Social Climate Fund however will be significantly smaller because the scope is smaller."
Read more: Compromise on ETS will help the climate, protect jobs and protect people
"The Environment Committee's approval of most of the compromises in my report on emissions trading is good for the climate, for jobs and for people," said the environment spokesman for the largest group in the European Parliament (EPP, Christian Democrats) in view of the vote on the compromise amendments to his report on the reform of the European emissions trading system. “I consider it a great success that companies that invest in climate-friendly technologies and thus secure jobs in Europe in the long term will get a tailwind. They are to receive not only financial resources from the Climate Investment Fund (previously the Innovation Fund), but also free certificates. "We have decided on three different mechanisms for this. In return, however, it will be very hard for those who want to continue operating old dirty plants. Anyone in Europe who does not invest in climate neutrality, has no future and should not be supported by the EU," Liese said.
MEPs also decided by a large majority to include waste incineration in the ETS system after an impact assessment in 2025.
Read more: Emissions trading reform: adoption of compromises in the Environment Committee
The vote on the biggest ever climate legislation of the European Union is expected to take place in less than three weeks. On 16th (and 17th) May, ENVI will vote on the ETS reform which not only covers the sectors that are already covered but also as a new sector the maritime sector and a new, separate system for road transport and buildings is planned. Positions in some issues are still very far apart even though negotiators of the political groups went now through all parts of the text. Two major outstanding problems are the level of ambition in ETS I and the question if and how the ETS II for buildings and road transport will be introduced. “A majority of the groups in ENVI demands more ambition in ETS I in mainly all the parts of the proposal: not only the overall ambition of 61% of emission reduction in 2030 but also the level of free allowance and the ambition of the so-called MSR. I personally am not convinced that this is the right thing to do and that it reflects a majority in plenary given some of the votes in the opinion-giving Committees,” said Peter Liese, Rapporteur on the file, in a meeting with journalists on Tuesday.
Read more: Over-ambitious ETS I and no ETS II not a good solution