European Parliament adopts draft reform of carbon market
(EurActiv, 15 Feb 2017) The European Parliament on Wednesday (15 February) adopted draft reforms of the EU’s carbon market post-2020 that aim to balance greater cuts in greenhouse gases with protection for energy-intensive industries.
The European Union’s emission trading system (ETS), a cap-and-trade permit system to regulate industry pollution, has suffered from excess supply since the financial crisis, depressing its prices and heightening the need for reform.
But politicians and EU nations are divided over how best to fix the complex system, with industry and environment groups lobbying hard on opposing sides.
Reform efforts have also been overshadowed by Britain’s decision to quit the bloc, raising fears it would also leave the EU’s scheme, hammering prices.