.jpg)
15 hours ago
3
Article content
(Bloomberg) — The biggest political group in the European Union’s parliament is considering pushing for carbon market changes to safeguard the region’s industrial competitiveness and curb excessive price swings.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
The EU’s Emissions Trading System has moved up the bloc’s political agenda ahead of planned reforms to the program that are due to be unveiled in July. The ETS is a key tool to curb greenhouse gases, but some governments and energy intensive sectors have criticized it for contributing to high energy costs.
Article content
Article content
Article content
The European People’s Party “fully backs” the carbon market, but wants a number of adjustments to ensure an “economically sustainable” shift away from fossil fuels, according to a draft internal document seen by Bloomberg. That includes a two-step approach to slowing the pace of emissions reductions and overhauling a mechanism that controls supply in the carbon market.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
“We want to provide breathing space for industry and guarantee value creation in the EU,” the group said in the document.
Article content
Started in 2005, the ETS imposes gradually shrinking emissions limits on around 10,000 facilities in sectors from steel to cement to fertilizers. The European Commission is due to unveil a review of the market on July 15 to adjust it to a new climate goal of reducing emissions by 90% by 2040 from 1990 levels.
Article content
Once published, the review will be discussed by the European Parliament and member states in the EU Council, with each institution having the right to propose amendments.
Article content
The EPP wants to slow the rate at which emission limits fall each year, known as the Linear Reduction Factor, to avoid the cap dropping to zero in 2039 under the system’s current design, according to the document. It should be lowered by at least 1 percentage point between 2031 and 2035, followed by “even more moderate trajectory after 2035, subject to an assessment of industrial competitiveness, technological progress and infrastructure readiness,” it said.
Article content
Article content
The party also wants to overhaul the Market Stability Reserve, which automatically controls supply in the ETS, to make it more responsive. The focus needs to be on preventing excessive price swings, the EPP said in the document.
Article content
The bloc should also establish a market for CO2 removals — where allowance are created for removing carbon from the atmosphere — and make them part of the ETS too, the EPP’s document shows. International carbon credits should be part of the EU emissions market as well, the party said.
Article content
A spokesperson for the EPP declined to comment.
Article content
The EPP’s other calls include:
Article content
- Slowing the shift away from free allowances during the rollout of the Carbon Border Adjustment Mechanism — a tool that puts a carbon price on imported goods — with a maximum phaseout of 30% before 2030.
- Industries not covered by CBAM must have access to free permits beyond 2030.
- Revising the methodology for carbon efficiency benchmarks, which determine how many free permits facilities get.
- Companies that decarbonize faster than others should be rewarded with free permits for longer.
- Member states must spend their ETS revenues on clean investments, and ETS-based funds that benefit the environment should be strengthened.
- The EU should keep carbon charges on airlines to intra-European routes, rather than to expand them to flights into and out of the region.
Article content
English (US)