Tuesday 22 July 2014 from 15:00 to 17:00 European Parliament – Room JAN 6Q1
AN EVENT KINDLY HOSTED BY:
Peter LIESE, EPP
Matthias Groote, S&D
Gerben-Jan GERBRANDY, ALDE
Bas EICKHOUT, Greens/EFA
===================================================================== The EU Emissions Trading System (EU ETS) is the largest carbon market in the world covering more than 11,000 power stations and industrial plants in 31 countries, as well as intra-EU flights. The EU ETS puts a limit on the amount of greenhouse gas emissions that big installations can emit. This cap is reduced over time so that total emissions are reduced. Companies participating in the system receive or buy emission allowances which they can trade with one another: one emission allowance allows for one tonne of CO2 to be emitted. Companies that cut their emissions more aggressively will have spare allowances to sell to other companies who did not sufficiently cut their emissions.
Currently, the EU’s carbon market suffers from a large amount of excess emissions allowances which has depressed the carbon price to a level that is too low to promote low-carbon solutions. In the coming years, EU policymakers have the chance to improve the design of the EU’s carbon market as the proposal to enact a market stability reserve will be negotiated and new legislative proposals to implement the 2030 framework are expected in early 2015.
This event provided the opportunity to learn more about the EU ETS and the recent political developments aimed at reforming the scheme. In preparation for this event Sandbag and Carbon Market Watch presented a common brochureexplaining the functioning of the scheme and highlighting their suggested solutions for solving its current shortcomings. Discussions focused on the policy measures that are needed to fix the EU ETS. (See presentations below.)