Description:The European Commission has proposed a revised EU wide Emissions Trading Scheme (ETS), to operate from 2021 onwards. The EU ETS allows participating companies (power generation and large industry) to buy or sell emission allowances. Ibec's response focuses on some of the suggested amendments and also seeks clarification on some of the proposals.
Implication(s):Ibec recognises the EU ETS as the main tool for least cost emissions reduction while promoting investments in low carbon technologies. However given the international scope of our members markets, we point to the need to prevent carbon leakage (relocation of production to other countries with more relaxed environmental regulations) and the need for the Irish government to consider providing support for indirect costs as the cost of Allowances increases.
Current Position:Subject to the ordinary legislative procedure, this gives the same weight to the European Parliament and the Council of the European Union. Both institutions will now consider the Commission's proposal. The European Parliament's ENVI Committee (Environment, Public Health and Food Safety) is the lead committee, and a draft report is expected in April 2016.
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Last Updated: 12/03/2015