ENVI Committee hearing on ETS reform

Emissions Trading System
18 February 2016


The European Parliament's ENVI Committee met on 18 February to discuss the EU’s post-2020 ETS reform proposal.


In his opening statement, EU Climate Commissioner Miguel Arias Cañete highlighted the crucial importance of the ETS review and acknowledged that EU emissions have decreased in 2015. “The EU’s 2030 target is consistent with what the world agreed in Paris”, he stressed before mentioning that competitiveness and innovation have to be taken into account within ETS review.


The hearing focused on deepening the EU’s emission reduction goals. MEP Jytte Guteland (S&D) stressed the need for a more ambitious linear reduction factor (LRF) for ETS.


The implementation of other sectors under the ETS scope was mentioned. “We need to consider extending the ETS scope to more sectors, to shipping for example” said MEP Jose Inacio Faria (ALDE).


Speakers recalled that the Commission proposed a two-tiered free allocation through 2030 to industry threatened by carbon leakage. Some firms are getting 100% of required EU allocations and others 30%.  “It is urgent to have more categories for more targeting. It should be possible to have a curve where those at more risk get more for free”, emphasised MEP Peter Liese (EPP).


The future of EU industries is at stake under the ETS review. MEP Andrzej Grzyb (EPP) pointed out that the objective is to reindustrialise EU. Without free allocation pressure will grow and production will be reallocated outside EU. “The ETS review can only be 100% successful if other continents are applying the same system as us”, underlined MEP Edouard Martin (S&D).