Emissions Trading System: European parliament vote marks major step towards reaching agreement

The European Parliament yesterday adopted its position in support of the Commission proposal for the revision of the Emissions Trading System Directive for the period after 2021. The vote concludes a year of intensive deliberations and paves the way for negotiations with the Council. Heads of State and governments agreed in 2014 that the Emissions Trading System is the EU’s flagship climate policy to deliver the required emission reductions in a cost efficient manner, while protecting vulnerable sectors in EU industry and supporting the clean energy transition where most needed. Welcoming the vote, Commissioner for Climate Action and Energy Miguel Arias Cañete said: “Yesterday’s landmark vote provides a clear outcome after more than a year of discussions in Parliament, and it demonstrates the European Union’s commitment to turning the Paris Agreement into reality through concrete action on the ground. Now the revision of the EU Emission Trading System is on the Council’s table and we hope they can swiftly reach an agreement to kick-start negotiations so that we can agree on it before the end of the year.”Building on the Commission proposalfrom July 2015, Parliament voted in favour of changes to strengthen the Market Stability Reserve to more quickly reduce the current oversupply of allowances on the carbon market.