Cities and regions claim financial gains from EU's Emission Trading System
EU's Assembly of local and regional leaders adopted yesterday a set of recommendations on the EU's Emission Trading System after 2020, from progressively increasing auctioned allowances in all economic sectors including the construction sector and maritime, land and air transport to fostering a proper carbon pricing at international level. Local leaders also claim 20% of ETS financial gains to support their front role in combating global warming. Ian Duncan, British Member of the European Parliament took the floor during CoR’s plenary, stressing ETS reform will have a bearing on local and regional authorities.
In line with its environmental priorities, the European Committee of the Regions approved yesterday in Brussels an opinion on " Cost-effective emission reductions and low-carbon investments " in Europe, tackling the reform of Europe's ETS system after 2020.
Marco Dus (IT/PES), rapporteur of the opinion and Member of Vittorio Veneto Municipal Council declared "While the Emissions Trading System is a key instrument in trying to fulfil the EU's climate change commitments, it is facing serious difficulties in delivering on the ground. We need a more ambitious and forward-looking approach".
Adopted by a very large majority the opinion calls on the EU to foster a proper carbon pricing at international level and prevent fluctuations due to speculation. It demands to integrate more economic sectors into ETS, including maritime land and air transport and the construction sector in order to promote innovation, greater energy efficiency and economic competitiveness.
Ian Duncan, British Member of the European Parliament (ECR group) declared: “Many of the factories and installations within the ETS are vital to local economies, employing hundreds if not thousands of people. It is important to remember that this reform will have a bearing on local and regional authorities. I will continue to work closely with the European Committee of the Regions as the ETS reform progresses".
To avoid the risk of carbon leakage, the CoR asks to gradually increase the number of allowances to be auctioned. Local leaders defend the opening of the Modernisation Fund to NUTS 2 regions to allow smaller local and regional authorities to benefit from it. The CoR calls for the swift ratification and implementation of the Paris Agreement reached during COP 21. Local leaders are nevertheless concerned about how concretely local and regional authorities will become fully involved in the implementation of the agreement.
As key front-liners in charge of implementing 70% of existing environmental legislation in Europe, the CoR demands a minimum percentage threshold of at least 20% of auction revenues to be managed directly by local and regional authorities for climate mitigation and adaptation measures.
The EU emissions trading system is a cornerstone of the European Union's policy to combat climate change and its key tool for reducing industrial greenhouse gas emissions cost-effectively. EU ETS operates in the 28 EU Member States and the three EEA-EFTA states (Iceland, Liechtenstein and Norway). It covers around 45% of the EU's greenhouse gas emissions.
Background Information
A Policy Framework for Climate and Energy in the period from 2020 to 2030 , CDR 2691/2014, Annabelle JAEGER, 07/10/2014.
Towards a global climate agreement in Paris , CDR 1535/2015, Annabelle JAEGER, 14/10/2015.
A mechanism for monitoring and reporting greenhouse gas emissions , CDR 87/2012, Neil SWANNICK, 19/07/2012.
Contact:
David Crous Duran
+32 (0) 476 87 99 29