{"id":120305,"date":"2023-01-03T07:15:00","date_gmt":"2023-01-03T06:15:00","guid":{"rendered":"https:\/\/renewable-carbon.eu\/news\/?p=120305"},"modified":"2022-12-22T10:39:31","modified_gmt":"2022-12-22T09:39:31","slug":"eu-agrees-carbon-market-overhaul-in-bid-to-hit-2030-climate-goal","status":"publish","type":"post","link":"https:\/\/renewable-carbon.eu\/news\/eu-agrees-carbon-market-overhaul-in-bid-to-hit-2030-climate-goal\/","title":{"rendered":"EU agrees carbon market overhaul in bid to hit 2030 climate goal"},"content":{"rendered":"\n\n\n<p>The ETS currently caps the emissions of around 10,000 factories and power plants, allowing those with surplus credits to make a profit by selling CO2 permits on the market.<\/p>\n\n\n\n<p>The scheme is now being extended to cover more sectors of the economy in order to align with the EU\u2019s 2030 climate goal \u2013 a commitment to reduce net emissions by 55% before they are eventually brought down to zero by 2050.<\/p>\n\n\n\n<p>\u201cThis deal will provide a huge contribution towards fighting climate change,\u201d said Peter Liese, a German lawmaker who steered negotiations on behalf of the European Parliament.<\/p>\n\n\n\n<p>The reformed scheme \u201cprovides a clear signal to European industry that it pays off to invest in green technologies,\u201d he added, saying the reformed EU carbon market now \u201ccovers almost all the sectors of the economy\u201d after a decision was made to extend the scheme to maritime emissions and waste incineration.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"BorlabsCookie _brlbs-cb-twitter\"><div class=\"_brlbs-content-blocker\"> <div class=\"_brlbs-embed _brlbs-twitter\"> <img decoding=\"async\" class=\"_brlbs-thumbnail\" src=\"https:\/\/renewable-carbon.eu\/news\/wp-content\/plugins\/borlabs-cookie\/assets\/images\/cb-twitter.png\" alt=\"Twitter\"> <div class=\"_brlbs-caption\"> <p>By loading the tweet, you agree to Twitter&#8217;s privacy policy.<br><a href=\"https:\/\/twitter.com\/privacy\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Learn more<\/a><\/p> <p><a class=\"_brlbs-btn\" href=\"#\" data-borlabs-cookie-unblock role=\"button\">Load tweet<\/a><\/p> <p><label><input type=\"checkbox\" name=\"unblockAll\" value=\"1\" checked> <small>Always unblock Twitter Tweets<\/small><\/label><\/p> <\/div> <\/div> <\/div><div class=\"borlabs-hide\" data-borlabs-cookie-type=\"content-blocker\" data-borlabs-cookie-id=\"twitter\"><script type=\"text\/template\">PGJsb2NrcXVvdGUgY2xhc3M9InR3aXR0ZXItdHdlZXQiIGRhdGEtd2lkdGg9IjUwMCIgZGF0YS1kbnQ9InRydWUiPjxwIGxhbmc9ImVuIiBkaXI9Imx0ciI+8J+knUJSRUFLSU5H8J+knTxicj7igbA8YnI+RVAgbmVnb3RpYXRvcnMgaGF2ZSByZWFjaGVkIGEgZGVhbCB3aXRoIDxhIGhyZWY9Imh0dHBzOi8vdHdpdHRlci5jb20vRVUyMDIyX0NaP3JlZl9zcmM9dHdzcmMlNUV0ZnciPkBFVTIwMjJfQ1o8L2E+ICZhbXA7IEBUaW1tZXJtYW5zRVUgb24gYSByZWZvcm0gb2YgdGhlIEVtaXNzaW9ucyBUcmFkaW5nIFN5c3RlbSA8YSBocmVmPSJodHRwczovL3R3aXR0ZXIuY29tL2hhc2h0YWcvRVRTP3NyYz1oYXNoJmFtcDtyZWZfc3JjPXR3c3JjJTVFdGZ3Ij4jRVRTPC9hPiAmYW1wOyB0aGUgY3JlYXRpb24gb2YgbmV3IFNvY2lhbCBDbGltYXRlIEZ1bmQgPGEgaHJlZj0iaHR0cHM6Ly90d2l0dGVyLmNvbS9oYXNodGFnL1NDRj9zcmM9aGFzaCZhbXA7cmVmX3NyYz10d3NyYyU1RXRmdyI+I1NDRjwvYT4gPGEgaHJlZj0iaHR0cHM6Ly90d2l0dGVyLmNvbS9oYXNodGFnL0ZpdGZvcjU1P3NyYz1oYXNoJmFtcDtyZWZfc3JjPXR3c3JjJTVFdGZ3Ij4jRml0Zm9yNTU8L2E+IDxhIGhyZWY9Imh0dHBzOi8vdC5jby9xZzdyTlpSWWdKIj5waWMudHdpdHRlci5jb20vcWc3ck5aUllnSjwvYT48L3A+Jm1kYXNoOyBFTlZJIENvbW1pdHRlZSBQcmVzcyAoQEVQX0Vudmlyb25tZW50KSA8YSBocmVmPSJodHRwczovL3R3aXR0ZXIuY29tL0VQX0Vudmlyb25tZW50L3N0YXR1cy8xNjA0MjgwMDg3OTEzOTM4OTQ0P3JlZl9zcmM9dHdzcmMlNUV0ZnciPkRlY2VtYmVyIDE4LCAyMDIyPC9hPjwvYmxvY2txdW90ZT48c2NyaXB0IGFzeW5jIHNyYz0iaHR0cHM6Ly9wbGF0Zm9ybS50d2l0dGVyLmNvbS93aWRnZXRzLmpzIiBjaGFyc2V0PSJ1dGYtOCI+PC9zY3JpcHQ+<\/script><\/div><\/div>\n<\/div><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.europarl.europa.eu\/news\/en\/press-room\/20221212IPR64527\/climate-change-deal-on-a-more-ambitious-emissions-trading-system-ets\" target=\"_blank\" rel=\"noreferrer noopener\">Under today\u2019s agreement<\/a>, sectors covered by the ETS will have to cut their emissions 62% below 2005 levels by 2030 \u2013 a significant increase on the current 43% target.<\/p>\n\n\n\n<p>\u201cThe carbon market reform is a major part of the Green Deal,\u201d said Pascal Canfin, a French lawmaker who chairs the Parliament\u2019s environment committee. \u201cThanks to the agreement reached this weekend, we will increase our industry\u2019s climate objectives by almost 50%,\u201d he said.<\/p>\n\n\n\n<p>According to Canfin, \u201cthe carbon price will be around \u20ac100\u201d after the reform, up from \u20ac80-85 currently. \u201cNo other continent in the world has such an ambitious carbon price,\u201d he said.<\/p>\n\n\n\n<p>A separate carbon market is also being created for buildings and road transport. This second ETS will start applying as of 2027 and&nbsp;<a href=\"https:\/\/www.europarl.europa.eu\/news\/en\/press-room\/20221212IPR64528\/deal-on-establishing-the-social-climate-fund-to-support-the-energy-transition\" target=\"_blank\" rel=\"noreferrer noopener\">will be accompanied by an \u20ac87-billion social climate fund<\/a>&nbsp;to compensate households for the extra costs this will create.<\/p>\n\n\n\n<p>This new carbon price on heating and transport fuels will be capped at \u20ac45 per tonne in a bid to prevent social discontent and rising energy bills. And if energy prices are exceptionally high, the new scheme will be delayed by a year, until 2028.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Carbon tariff<\/h3>\n\n\n\n<p>A key flashpoint in the negotiation was to preserve the competitiveness of industries like chemicals, cement and steelmaking which currently receive most of their CO2 permits for free \u2013 an incentive to help them decarbonise and invest in green technologies.<\/p>\n\n\n\n<p>The scheme was heavily criticised by environmental groups who said big polluters were&nbsp;<a href=\"https:\/\/www.euractiv.com\/section\/emissions-trading-scheme\/news\/eu-industries-raked-in-e100bn-in-free-co2-credits-since-2013-study\/\" target=\"_blank\" rel=\"noreferrer noopener\">making huge profits<\/a>&nbsp;from the ETS without making the corresponding green investments.<\/p>\n\n\n\n<p>Under today\u2019s deal, free allowances will be entirely phased out by 2034 and almost cut in half by 2030 (48.5%).<\/p>\n\n\n\n<p>They will be gradually replaced by&nbsp;<a href=\"https:\/\/www.euractiv.com\/section\/energy-environment\/news\/eu-seals-agreement-on-worlds-first-carbon-tariff\/\">a new carbon tariff<\/a>&nbsp;at the EU\u2019s border, which aims at protecting European companies from imports of cheaper products coming from countries with lower environmental standards.<\/p>\n\n\n\n<p>The new tariff will mirror the price on the EU\u2019s own carbon market and will initially apply to imports of iron and steel, cement, aluminium, fertilisers and electricity as well as hydrogen.<\/p>\n\n\n\n<p>But steelmakers are wary of the EU\u2019s new border levy, saying it won\u2019t make pricier European steel more attractive on global markets.<\/p>\n\n\n\n<p>The&nbsp;phase-out of free allocations \u201crisks wiping out a large part of EU steel exports worth \u20ac45 billion if no concrete export solution is found before 2026\u201d when the new carbon tariff starts applying, warned Eurofer, the European steel association.<\/p>\n\n\n\n<p>The ETS deal also comes with extra cash for industry, including a bigger&nbsp;<a href=\"https:\/\/climate.ec.europa.eu\/eu-action\/funding-climate-action\/innovation-fund_en\">innovation fund<\/a>&nbsp;for state-of-the-art investments in green technologies and a&nbsp;<a href=\"https:\/\/climate.ec.europa.eu\/eu-action\/funding-climate-action\/modernisation-fund_en\">modernisation fund<\/a>&nbsp;to support industries in lower-income EU countries.<\/p>\n\n\n\n<p>In total, \u201cnearly \u20ac50 billion will be available to support innovation and accelerate the decarbonisation of companies,\u201d Canfin said.<\/p>\n\n\n\n<p>And to protect EU industries from wild fluctuations in the carbon price, 24% of all ETS allowances will be placed in a&nbsp;<a href=\"https:\/\/www.europarl.europa.eu\/news\/en\/press-room\/20220401IPR26541\/fit-for-55-parliament-wants-to-extend-the-market-stability-reserve-to-2030\">market stability reserve<\/a>&nbsp;that will release CO2 permits to cool down the market in case the carbon price gets too high.<\/p>\n\n\n\n<p>On the European Parliament side, the deal is backed by all political groups except the far-right, Liese said, with the centre-right EPP, the left-wing S&amp;D, the centrist Renew, the Greens and conservative ECR all supporting it.<\/p>\n\n\n\n<p>The provisional deal now needs to be confirmed by the EU member states and the European Parliament, which will hold a plenary vote in January or February, Canfin said.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Environmental groups disappointed<\/h3>\n\n\n\n<p>WWF, the green conservation group, was critical of the deal announced this morning, saying it falls short of what is needed to keep the rise in global temperatures below 1.5\u00b0C.<\/p>\n\n\n\n<p>\u201cThis would have been a good deal ten or twenty years ago, but in 2022 it\u2019s too little too late,\u201d said Alex Mason from the WWF\u2019s European Policy Office. \u201cTo fix this and to be sure the 2030 target is met, ETS sectors should reduce their emissions by&nbsp;<a href=\"https:\/\/wwf.us1.list-manage.com\/track\/click?u=ea404aee9c118a31232e854a0&amp;id=67fe263bb9&amp;e=fc1f116195\" target=\"_blank\" rel=\"noreferrer noopener\">at least 70%<\/a>,\u201d the WWF said in a statement.<\/p>\n\n\n\n<p>WWF was particularly critical of the agreement to phase out free allowances to industry, saying it the pace is \u201cfar too slow\u201d, with a full phase out happening only in 2034.<\/p>\n\n\n\n<p>\u201cThe free allocation of emissions allowances will be made conditional on investment in techniques to increase energy efficiency. However, if a company does not comply, it will still receive as much as 80% of its previously allocated free allowances,\u201d the WWF remarked.<\/p>\n\n\n\n<p>CAN Europe, another NGO, echoed those criticisms but also welcomed moves by lawmakers making it obligatory for EU governments to earmark 100% of their carbon market auction revenues for climate-friendly investments.<\/p>\n\n\n\n<p>\u201cEU countries will now have to spend all their ETS cash on climate action, and this is definitely a step forward,\u201d agreed Romain Laugier from WWF. \u201cUnfortunately, the quality of a \u2018climate action spending\u2019 is still entirely up to Member States. It means they could continue as before, and use some of this money to subsidise fossil coal and gas,\u201d he said.<\/p>\n\n\n\n<p>Green lawmaker Michael Bloss defended the agreement, saying it will incentivise investments in green technologies.<\/p>\n\n\n\n<p>\u201cThe free pollution party is over, we are sending the industry on the modernisation course,\u201d Bloss said, reminding that free allowances will be almost halved by 2030 and completely eliminated by 2034.<\/p>\n\n\n\n<p>\u201cThe worst polluters pay extra and those who decarbonise are supported,\u201d the German Green MEP said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The ETS currently caps the emissions of around 10,000 factories and power plants, allowing those with surplus credits to make a profit by selling CO2 permits on the market. The scheme is now being extended to cover more sectors of the economy in order to align with the EU\u2019s 2030 climate goal \u2013 a commitment [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","nova_meta_subtitle":"European Union negotiators reached agreement early on Sunday morning (18 December) to reform the EU\u2019s Emissions Trading Scheme (ETS), the biggest carbon market in the world and the bloc\u2019s flagship climate policy instrument","footnotes":""},"categories":[5571],"tags":[12922,21522,18764,16496],"supplier":[2317,4514],"class_list":["post-120305","post","type-post","status-publish","format-standard","hentry","category-co2-based","tag-carbon","tag-carbonmarkt","tag-climategoals","tag-greendeal","supplier-european-commission","supplier-european-parliament"],"_links":{"self":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts\/120305","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/comments?post=120305"}],"version-history":[{"count":0,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts\/120305\/revisions"}],"wp:attachment":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/media?parent=120305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/categories?post=120305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/tags?post=120305"},{"taxonomy":"supplier","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/supplier?post=120305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}