European Parliament finally approves reform of emissions allowance system

MEPs will negotiate the final wording of the reform with the member states this autumn

editor: REMIX NEWS
author: Czech News Agency
Ukrainian flags in front of the European Parliament building. (Pixabay)

On Wednesday, the European Parliament approved a reform of the emissions allowance system that had been initially rejected at a previous meeting in June. According to the compromise proposal, MEPs agreed that the free allocation of allowances will end gradually between 2027 and 2032.

The new obligation to pay for heating emissions from buildings should only apply to commercial spaces and not all real estate, as initially proposed by the European Commission.

By 2030, the EU should eliminate 63 percent of the emissions produced by sectors covered by the allowance system in 2005, MEPs said

Starting this autumn, MEPs will negotiate the final wording of the reform with the member states, whose position will be coordinated by the Czech presidency.

Emissions reform is a crucial part of the package proposed a year ago by the European Commission, which is seeking to steer the EU towards meeting its 2030 emissions targets.

Initially, European lawmakers disagreed on the pace of abolishing free emissions allowances for some sectors. The right-wing, including the EPP Group, wanted to postpone them, resulting in left-wing MEPs rejecting the entire proposal. However, a compromise proposal was presented, which won with a majority of 439 votes out of 628.

The compromise text also includes the possibility for Brussels to intervene more effectively in the functioning of the emissions market in the event of a significant rise in allowance prices. MEPs have also proposed the commission draw up rules restricting speculators’ access to buying and selling allowances.

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