EU lawmakers last night reached a provisional deal on the next phase of the EU Emission Trading System.
After four “trilogue” negotiating sessions involving the EU Council under its Estonian Presidency, the EU Commission and European Parliament, agreement was reached on the fourth phase of the ETS, for the period after 2020.
The system, which creates a market in permits for carbon emissions, is the cornerstone of the EU’s policy to combat climate change and its key tool for reducing greenhouse gas emissions cost-effectively.
It is the world’s first major carbon market and remains the biggest one.
The draft deal comes just ahead of the 23rd annual Conference of the Parties on climate change (COP23) which meets in Bonn next week.
As rapporteur, Julie Girling is the MEP steering the new ETS legislation through the Parliament.
Speaking in Brussels this morning, she said “I am pleased we were able to reach provisional agreement with the Estonian Presidency.
“Ahead of the European Parliament’s delegation to COP23, this sends an important signal to the market. The Parliament is committed to the integrity of the EU ETS and we are pleased to have achieved a strong outcome for Phase IV, giving certainty to operators and allowing stakeholders to push on to implement the goals of the Paris Agreement.
“The agreement will contribute to the EU’s long-term climate commitments and finds a good balance between strengthening via the Market Stability Reserve and appropriate carbon-leakage provisions for industry.
“This deal shows that the EU is serious about its climate leadership. It is never easy to agree between 28 Member States but the value of working together is worth much more than the sum of its parts. It is now essential that we continue to push forward to implement the Paris Agreement goals by building on this agreement.”