Carbon Market Watch criticizes European Parliament

Press Statement

Carbon Market Watch criticizes European Parliament’s vote to fix EU Emissions Trading  Scheme as stifling

Brussels, 20 June 2013 – Yesterday the European Parliament’s Environment Committee voted in favour of a compromise deal on the European Commission proposal to temporarily curb the oversupply of emission allowances in the EU Emissions Trading Scheme (EU ETS). Carbon Market Watch criticizes the outcome as stifling and calls on the European Parliament’s plenary to reconsider the vote.

The original ‘back-loading’ proposal which called for 900 million allowances to be withheld from auctioning from 2013-2015 and introduced into the market in the period 2019-2020, was rejected by the European Parliament in April 2013.

The compromise, which was adopted yesterday, foresees that the 900 million allowances withheld from the market will be reintroduced one year after their withdrawal.

”This could mean that if the proposal is adopted this year, allowances could be withheld at the earliest next year and re-introduced in 2015”  comments Eva Filzmoser, Carbon Market Watch Director “This will do nothing to curb huge oversupply and prop up carbon market prices.”

In addition, 600 million allowances are to be made available for a fund to support largely energy-intensive industries.  

”Any compromise deal on EU’s climate flagship that supports heavy polluters puts the credibility of the European Parliament at risk” comments Filzmoser. “We call on the European Parliament’s plenary to reconsider the vote and strengthen this deal in their July vote.”

ENDS.

© Scoop Media