The European Parliament (EP) has taken an important step forward in its efforts to achieve the Paris climate goals by voting on a thorough reform of the Emission Trading System (ETS). Ivo Belet MEP, in charge of the dossier on behalf of the EPP Group, said: "The reform we have adopted is balanced. It guarantees that we implement the Paris Climate Agreement while safeguarding jobs and the competitiveness of European industry. This reform includes the necessary incentives to further reduce CO2 emissions, while at the same time it sufficiently protects those industrial sectors that are exposed to international competition."
For the EPP Group, it is important to avoid that energy-intensive companies move their production facilities and investments to regions without similar climate regulations. This would cause a move of CO2 emissions instead of a reduction (= carbon leakage).
Esther de Lange MEP, EPP Group Spokeswoman in the EP’s Industry Committee, added: “The ETS is not only a climate policy, it is also an industrial policy and as such, crucial for the competitiveness of our businesses and the jobs of our citizens. The transition to a low carbon economy is not an easy process, but we are convinced that a strong and competitive industry is crucial to making Europe's economy more sustainable. Today's plenary vote is also a confirmation of Europe's leadership in combating climate change, an important signal to our partners around the world."
Peter Liese MEP, EPP Group Spokesman in the EP’s Environment Committee, concluded: "The outcome is more ambitious than the Commission proposal with respect to climate protection and, at the same time, it rewards companies using state-of-the-art technology or investing in low carbon technology. Outdated polluting industries have to pay."
The ETS overhaul must help reduce emissions of approximately 11,000 energy-intensive companies and energy producers to achieve a reduction of 43% of CO2 emissions by 2030.