IETA welcomes EC’s publication of the Carbon Market Report
Commission signals commitment to engage in discussions for a long-term structural reform of the EU ETS
Brussels, November 14, 2012 - IETA welcomes the European Commission’s publication of its report on the “The state of the European carbon market in 2012” and urges prompt consultations with stakeholders on structural reforms of the EU ETS.
The options laid-out in the report are a useful contribution to the parallel debate going on regarding the proposal to backload 900 million phase 3 allowances,which the Commission published on Monday. With now enhanced clarity on the wider context, the conditions are set for a prompt decision on backloading, providing time for careful consideration by policy makers of long-term reforms.
IETA believes a market-based approach is the most cost-effective way of achieving climate change mitigation objectives. We see structural reforms as critical for enhancing the credibility of the ETS as the centerpiece of EU climate policy far into the future. We stand ready to work with the Commission to advance the necessary long-term legislative proposals for a structural reform of the EU ETS.
IETA sees the introduction of structural measures in the EU ETS as a way to avoid future routine interventions in the market, which could cause problems of predictability for market operators. However, given the gravity of the issues at stake, IETA expresses concern that the Commission appears to be considering only a limited number of options – at this early stage in the debate, now might not be the best time to rule out particular options.
According to IETA’s President & CEO, Dirk Forrister: “We welcome today’s publication of the Carbon Market Report. It provides a foundation for a serious and open debate on the options needed for a structural reform of the EU ETS. We now call on the Parliament and Member States to begin that debate promptly – and to send the political signal of their commitment to work constructively and to maintain the EU ETS as the key instrument of theEU’s Climate Change policy”
Sarah Deblock – IETA EU Policy Director firstname.lastname@example.org +32 4 917 442 74
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