The reform of the Emissions Trading System (ETS) will be crucial to achieve the EU’s CO2 reduction goals. It creates a Modernisation Fund to help the EU’s Central European Member States to upgrade their energy systems and an Innovation Fund to support further CO2 reduction in our industries.
Today, an agreement on the reform of the ETS for 2021-2030 will finally and definitely be endorsed by the European Parliament, making this a historic day for the EU's climate policy.
"A fully-functioning ETS is crucial to EU climate policy. Thanks to this reform, we can take the ETS to the next level: instead of reducing our emissions by 38 million tons a year, from 2021, we will reduce them by 50 million tons a year. This is equal to closing down three large coal-fired power plants", stressed Ivo Belet MEP, the EPP Group’s negotiator on the file, showing his satisfaction at the Group’s success during the negotiations.
The agreement on the ETS protects the competitive situation of the European industry and improves jobs and growth prospects across Europe. In addition, the Modernisation Fund, created with the ETS reform, will help the EU’s Central European Member States to upgrade their energy systems.
"This reform is truly ambitious yet realistic and feasible at the same time. The goal of the ETS is and will always be to offer industries the right incentives to consume and produce energy in a sustainable way. With this agreement, we are providing the right balance between investments in clean energy on the one hand, and safeguarding jobs on the other hand", added Belet.
"Finalising this reform is a huge achievement because we are keeping Europe together. This is not the fossil-free industrial shock therapy that some parties in Parliament wanted, but a realist and gradual transformation of our economy. It is fair to SMEs and the more industrialised countries, and will allow Europe to deliver on our Paris commitments", added Esther de Lange MEP, EPP Group Spokeswoman in the EP’s Industry Committee.
Energy innovation is also very much at the heart of the Initiative Report which deals with the acceleration of the clean energy innovation, yet to be voted today in plenary.
"Energy innovation is about bigger and more efficiently-used funds for research and development: at least €120 billion for the next EU research and innovation programme (FP9). And within this framework, a 50% increase of funds for innovations in the energy sector", explained Jerzy Buzek MEP, responsible for the dossier on behalf of the EPP Group.
The EPP Group is the largest political group in the European Parliament with 217 Members from 27 Member States