European Parliament Environment Committee backs moderate improvements in EU carbon market - Main contents

Today, the Environment Committee of the European Parliament voted for a number of moderate measures to strengthen the EU carbon market (EU ETS). MEPs backed the cancellation of up to 1 billion emission allowances and raised the yearly emission reductions of the system from 2.2% (as proposed by the European Commission) to 2.4% from 2021 onwards. The increased reduction level will bring Europe on track to deliver at least 80 percent emission reductions by 2050.

In the Committee's proposals energy-intensive industries will have increased possibilities to acquire free emission allowances, due to extending the range of eligibility criteria for industries compared the Commission proposal. On the other hand, the Environment Committee decided to exclude sectors from free allocation that have little trade with regions outside of the EU.

ALDE shadow-rapporteur Gerben-Jan Gerbrandy (D66, the Netherlands):

"I welcome today's moderate improvements in the carbon market. But with all exemptions, funds and state aid systems voted in, it is difficult to still call EU's carbon market a real market. We can and should do more to truly reward investments in innovation and competitive clean technologies."