The Industry committee of the European Parliament has rejected plans to start reforming the European carbon market - the EU Emissions Trading System (ETS) - in 2021; it had previously rejected plans to begin reforms in 2017, preferring 2021. Germany and the United Kingdom, where renewable or nuclear power generation is promoted, are now calling for reform to start in 2017, while coal-dependent Poland was pushing for 2021. A compromise on 2019 failed to be reached.
The European Commission had proposed to remove hundreds of million of surplus EUAs (CO2 emission allowances) from the market as of 2021. The aim is to reduce the current oversupply of ETS CO2 allowances of more than 2 billion permits in a context of weak economic growth; once an agreement on reform is reached in a plenary session of Parliament and approved by member states, removed EUAs will be placed in a Market Stability Reserve and issued again if demand rises.
Interested in Global Energy Research?
Enerdata's premium online information service provides up-to-date market reports on 110+ countries. The reports include valuable market data and analysis as well as a daily newsfeed, curated by our energy analysts, on the oil, gas, coal and power markets.
This user-friendly tool gives you the essentials about the domestic markets of your concern, including market structure, organisation, actors, projects and business perspectives.