EU carbon market reform ‘progressing at snail’s pace’ ahead of final talks

(EurActiv, 30 Nov 2022) Negotiations to reform the EU’s Emission Trading Scheme (ETS), which prices CO2 pollution from the power sector and industry, are currently stuck ahead of a final round of talks scheduled on 16 December.

The ETS, which requires large CO2-emitters like steelmakers and coal power plants to purchase emission certificates for each ton of CO2 they emit, is the EU’s flagship climate policy tool.

But negotiations are proving to be complex, which may imperil their planned conclusion in December.

“We are dealing with the biggest environmental and climate law that has ever been in the EU institutions,” explained Peter Liese, a German conservative MEP who is the European Parliament’s chief negotiator on the ETS revision.

The ETS puts a cap on emissions by limiting the number of certificates available on an annual basis. To achieve the EU’s goal of reducing emissions by 55% by 2030, the number of certificates available must be reduced significantly.

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EurActiv, 30 Nov 2022: EU carbon market reform ‘progressing at snail’s pace’ ahead of final talks