On 4 May the EPP Group hosted a hearing on EU Emissions Trading Scheme (ETS) in the European Parliament, following the European Commission (EC) proposal for a revision of the ETS Directive for the fourth period (2021-2030). MEPs, EC officials, researchers as well as representatives from energy organisations and industries discussed the Innovation Fund, Modernisation Fund, indirect costs and carbon leakage provisions.
The hearing also addressed the France-UK non-paper proposing the so-called “tiered approach”. Energy intensive industries published a statement on 19 April expressing their concerns regarding the “tiered approach” to free allocation under post-2020 EU ETS. This approach would reserve free allowances for some sectors at the expense of others. The signatories state that the proposed “tiering” has no environmental or economic justification and ask for a framework that gives all sectors equal opportunities to compete and thrive in Europe.