BRUSSELS, 9 November – IETA welcomes a preliminary deal reached this morning on reform to the EU’s carbon market and which sets the framework out to 2030. We urge the Member States representatives in Coreper, and later on the Council and the European Parliament, to swiftly confirm the long-awaited agreement.
The agreement between representatives from the European Parliament, the Council and the European Commission came after several months of negotiation. IETA in particular is pleased with decisions to strengthen the performance of the EU ETS by doubling the rate at which surplus emissions allowances will be removed from the market and placed in the Market Stability Reserve for the first five years in operation. IETA also welcomes measures to protect the competitiveness of industries at risk of carbon leakage (3% conditional shift from the auction share to the free allocation share).
“Today’s agreement is a welcome boost to market fundamentals and adds momentum to the UN climate negotiations which are underway in Bonn,” says IETA’s CEO and President Dirk Forrister. “It sends a strong signal that the EU is serious about its leadership role in the international climate policy arena and in helping make the Paris Agreement a success.”
“While business welcomes the clarity from today’s trilogue deal, there is still a lot to be done before the next phase of the EU ETS starts in 2021,” says Julia Michalak, IETA’s Director of EU Policy. “After the agreement is confirmed, the lengthy process of implementation work will start. The devil is often in details.”
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