The EU’s Environment Council meets Tuesday to discuss Europe’s emissions trading system. The EU ETS is often described as the “flagship” of Europe’s climate policy and is currently the largest carbon market in the world. However it has been malfunctioning since a systematic oversupply of credits built up as a result of both Europe’s economic crisis and weak ambition in setting the cap when the ETS was first established.
· MEPs also back tightening cap on aviation emissions.Support from ports and cargo owners for last week’s vote by MEPs to include shipping emissions in the EU emissions trading system (ETS) has been sharply criticised by shipowners. The European Community Shipowners' Associations (ECSA) said it ‘deplores’ the shipping industry’s backing for Europe regulating ship CO2 as a ‘first move’ to kick start action at global level. Shipping in Europe has CO2 emissions equal those of the Netherlands.
In a plenary vote on 14 February, the European Parliament will adopt its position on reforms to Europe’s emissions trading system (EU ETS) for the 4th trading period (2021-2030). These reforms aim to fix major issues with EU ETS such as the need for tighter reduction caps and the oversupply of allowances which has depressed the carbon price.
In this letter CAN Europe, Transport & Environment, Seas at Risk, Carbon Market Watch and the Aviation Environment Federation urge the European Commission to ensure the aviation and maritime sectors reduce emissions in line with the temperature goals of the Paris Agreement.
By Bill Hemmings, aviation and shipping directorWHAT WE LEARNED IN 2016: 2015 ended with big promises from the UN aviation and shipping bodies, ICAO and the IMO, that they’d finally act to rein in their sectors’ substantial and growing climate impact. It has been almost 20 years since they were first tasked with doing so by the Kyoto Protocol, and 2016 would be their last chance.