EU Carbon Rises to Highest in Almost Three Months as Panel Approves Measures, CBAM; More Lawmaking to Come

EU carbon allowances rose 3% to 92.24 euros a ton on ICE.

Unedited press release (see links too)

Climate change: Members of European Parliament push for accelerated EU action and energy independence

Press Releases

ENVI 

  • Emissions Trading System reform: free allowances for industries phased out more quickly and citizens included later in ETS II
  • Broader scope and faster implementation in new carbon leakage instrument
  • Stricter trajectory, more transparency and less flexibility for member states’ greenhouse gas emissions in other sectors
  • New EU carbon sinks goal will increase EU 2030 reduction target to 57%

MEPs adopt their position on key EU draft laws to combat climate change by reducing greenhouse gas emissions by at least 55 % by 2030 and to protect jobs and citizens.

On Tuesday, the Committee on Environment, Public Health and Food Safety adopted five reports of the “Fit for 55 in 2030 package”. This is the EU’s plan to reduce greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels and have net zero greenhouse gas (GHG) emissions (climate neutrality) by 2050 in line with the European Climate Law.

The package adopted today is an important step towards the EU’s goal to become independent from expensive and polluting fossil fuels from Russia well before 2030.

Emissions Trading System reform

MEPs want to incentivise industries to further reduce their emissions and invest in low-carbon technologies. The Emissions Trading System (ETS) should be reformed, including:

  • New ETS II for buildings and road transport – citizens not to be included before 2029
  • Free allowances to be phased out from 2026 and disappear by 2030
  • A bonus-malus system to be introduced from 2025
  • Revenues to be used exclusively for climate action in EU and member states.

For more details, see the separate press release. MEPs have also adopted a report on the revision of the ETS as regards aviation.

Higher ambition in new carbon leakage instrument

MEPs call for a broader scope and faster implementation of the EU Carbon Border Adjustment Mechanism (CBAM) to prevent carbon leakage and raise global climate ambition, including:

  • Phasing in CBAM earlier and ending free allowances in EU ETS by 2030
  • Scope to be extended to include organic chemicals, plastics, hydrogen and ammonia as well as indirect emissions
  • EU budget to support least developed countries through amounts equivalent to sums collected through CBAM
  • Need for a centralised EU CBAM authority.

For more details, see the separate press release.

Related CarrZee story:

https://carrzee.org/2022/05/16/eu-to-protect-its-new-green-hydrogen-industry-using-planned-carbon-border-adjustment-lawmaker/

Photo by Marcin Jozwiak on Pexels.com

One comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s