ETS reform - BusinessEurope opinion on the ITRE draft opinion
On 24 May, members of the European Parliament Industry, Research and Energy Committee (ITRE) will exchange views on the rapporteur draft opinion on the Commission’s proposal to review the EU Emissions Trading System (ETS). While the report includes some positive elements, several core issues need to be substantially improved.
BusinessEurope is strongly committed to make the system work for all the covered sectors i.e. a meaningful carbon price for investments in the energy sector as well as full security that the 10% best performing installations will get 100% of free allowances up to their benchmark. This is essential on the one hand to stimulate investments in the energy sector and on the other hand to support the global competitiveness of industry.
We believe that the ITRE rapporteur’s draft opinion does not take into account this double objective. On the contrary, a proposal such as the “tiered” approach disregards that competitiveness depends on a strong industrial value chain. A better solution exists, which is to modify the ratio of 57% auctioning vs. 43% free allowances. This would help to avoid many difficulties without disturbing the carbon market or questioning the environmental integrity of the system.
The table below compares BusinessEurope priorities with the draft opinion. More detailed views and analysis of BusinessEurope on the EU ETS reform are available in our February 2016 position paper as well as in a recent statement on the “tiered” approach.