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On 29 June, the Environment Council adopted the Council position on the revision of the EU Emission Trading System (ETS). . Member States supported the inclusion of emissions from maritime transport into the main ETS, the creation of a separate ETS for road transport emissions, and the 100% CO2 emission reduction target by 2035 for new vans.

On the separate ETS for road transport emissions (ETS II), Member States retained the scope of the Commission proposal by including all road users and delayed by one year its implementation - auctioning of allowances from 2027 onwards and surrender from 2028 onwards. The Council added a temporary possibility for Member States to exempt suppliers from the surrender of allowances until December 2030, if they are subject to a carbon tax at national level, the level of which is equivalent or higher than the price of ETS II allowances.

CLECAT is pleased to see that the Council supports an all-inclusive ETS-2 which makes no distinction between private and commercial users.  CLECAT regrets however that the Council position falls short of earmarking the revenues. Allocating the revenues to the sector is essential to secure investments in green vehicles and technology.

The Council agreed to include maritime shipping emissions within the scope of the EU ETS. The general approach accepts the Commission proposal on the gradual phase-in of the system, starting as of 2024 until end 2029. The general approach also strengthens measures to combat the risk of carbon leakage from ships calling at non-EU ports close to the EU territory which CLECAT has been calling for.  In addition, Member States have taken geographical specificities into account and agreed on transitional measures for small islands and ice-class ships.

In aviation, the Council agreed to cut emission allowances by 2027, in stages, aligning the EU ETS with the global Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). The EU ETS will apply to all intra-Europe flights, including the UK and Switzerland, while CORSIA applies to aviation services to and from regions outside the EU, but within the CORSIA agreement.

The Council also adopted its general approach on the revision of CO2 standards for cars and vans. Member States kept the same level of ambition as the Commission proposal, strengthening targets for new vans to 50% emission reduction by 2030, to reach 100% emission reduction by 2035. The Council also agreed to put an end to the regulatory incentive mechanism for zero- and low-emission vehicles (ZLEV) as of 2030.

The Council will now enter institutional negotiations with the Parliament, which adopted its position on both files earlier in June.

Source: Council of the EU