The European parliament has voted against freezing auctions of a portion of CO2 emission quotas, so as to boost the price of EU "polluter's permits". The current surplus of allowances has led to plummeting prices (less than €5/ton).
Members of the European Parliament (MEPs) opposing the measure advocate deeper reform of the ETS and fear that interfering with the supply of credits could undermine players' confidence in the scheme. Some also believe that a rise in the carbon price would erode the competitiveness of European industry and be passed on in household energy bills. On the other hand supporters of the measure argued that an oversupply of credits must be corrected to make the system function as intended. They say a higher carbon price would catalyse the EU's transition to a green economy by stimulating investment and innovation and could also help to connect the EU carbon market with those of other regions. In a separate vote, MEPs agreed to temporarily exclude intercontinental flights from the scheme.
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