EU Parliament Narrowly Votes Against Withholding Emission Allowances

The European Parliament narrowly voted against a proposal aimed at withholding around 900 million emission allowances from the EU emissions trading scheme (EU ETS) over the next two year in order to boost the emission allowance price and make low carbon investments more attractive. It will now be referred back to the environment committee that had supported the plan in February.

MEPs opposing the so-called “backloading” proposal argued that interfering with the supply of credits would undermine confidence in the trading scheme and a rising carbon price would erode the competitiveness of European industry and lead to higher household energy bills.

In Germany the government’s opinion on the backloading proposal was split with Conservative Environment Minister Mr Altmaier supporting the plan prior to the vote and his Liberal cabinet colleague Economics Minister Philip Rösler opposing it for fear of rising carbon prices for the industry. Mr Rösler welcomed the vote.

A separate draft law on a temporary exemption for intercontinental flights from the EU ETS was adopted by 577 votes to 114, with 21 abstentions. The proposal was agreed on with the Council so as to facilitate progress towards a global agreement within the International Civil Aviation Organisation (ICAO).

Source: European Parliament

 

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