Tag: Emissions Trading System (ETS)

EU revised the report on EU ETS putting pressure on IMO to have a system comparable to ETS operating for global shipping as from 2021 or else shipping will be then included in the EU ETS as from 2023. First reactions have slammed the decision; many industry stakeholders have expressed their concerns that the split threatens shipping.

The European Parliament has voted in favor of including shipping industry in the EU Emissions Trading Scheme (ETS) from 2023 if IMO does not deliver a global deal by 2021. The decision, which imposes a regional ETS on shipping, has raised concerns among the global shipping community. ICS says that it will polarise and impede current discussions on additional CO2 reduction measures at the UN IMO.

The Industry Committee of the European Parliament adopted its report on the EU’s Emissions Trading Scheme and stressed that the climate impact of shipping should be regulated at UN level. Therefore, the Committee rejected the inclusion of shipping in the EU ETS confirming IMO regulatory role on CO2 emissions.

The Paris climate agreement’s target of limiting global warming well below 2°C will be impossible without measures to curb shipping’s greenhouse gas emissions, MEPs told industry representatives last week. Including shipping CO2 in the EU’s emissions trading system (ETS) or having the sector contribute to a climate compensation fund were the options on the table, they said.

  A reform of the EU Emissions Trading Scheme (ETS), informally agreed with the Latvian Presidency of the Council, was endorsed by Parliament on Wednesday, June 8th, 2015. The reform is intended to reduce the surplus of carbon credits available for trading in order to support the price of the emission rights. The scheme will start operating in 2019. The new law creates a system that will automatically take a portion of ETS allowances off the market and place it in a reserve if the surplus exceeds a certain threshold. In the opposite scenario, allowances could be returned to the market. The surplus of emission allowances, which has been building up in the system since 2009, is estimated at over 2 billion. “The Market Stability Reserve (MSR) is an efficient, market-driven tool that will stabilise our ETS system and thereby save the central pillar of Europe's sustainability and climate policy. MSR is a crucial building block to help ensure that CO2-prices spur innovation in the field of energy efficiency. This reform puts Europe on the right track to achieve its ambition of 40% less CO2-emissions by 2030,” said Ivo Belet (EPP, BE), who steered the legislation through Parliament. The text negotiated with ...

EU Heads of State and Government have agreed the headline targets and the architecture for the EU framework on climate and energy for 2030. The agreed targets include a cut in greenhouse gas emissions by at least 40% by 2030 compared to 1990 levels, an EU-wide binding target for renewable energy of at least 27% and an indicative energy efficiency target of at least 27%. The decision underlines the European Union's position as a world leader in the fight against climate change. The agreed greenhouse gas target will be the EU's contribution to the global climate change agreement due to be concluded in Paris next year. The renewables and energy efficiency targets will increase the security of the EU's energy supplies and help reduce its dependency on imported fossil fuels. Following the agreement by the European Council, European Commission President José Manuel Barroso said: "This 2030 package is very good news for our fight against climate change. No player in the world is as ambitious as the European Union when it comes to cutting greenhouse gas emissions. Indeed, the proof that it is ambitious is that we are now going from a goal of 20% cut by 2020 compared to ...

Carbon emissions trading in Europe

How does the emission trading scheme work?

Setting Targets for 2030