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On 17 May, the EP’s ENVI Committee adopted their report on the revision of the EU Emissions Trading System (ETS). MEPs supported the inclusion of emissions from maritime transport into the main ETS and the creation of a separate ETS for road transport emissions.

MEPs also propose that the EU ETS should apply to all flights departing from an airport located in the European Economic Area (EEA), not just to flights within the EEA as at present, starting 30 April the year after the entry into force of the new rules. According to the ENVI Committee, this measure is necessary to ensure the ambitious greenhouse gas emissions reductions in the aviation sector in line with the Paris Agreement, and to contribute to an international level playing field while ensuring equal treatment on routes.

MEPs expressed support to the inclusion of maritime transport into the main ETS, by covering 100% of emissions from intra-EU routes as of 2024 (with no gradual phase-in) and 50% of emissions from extra-European routes from and to the EU until end 2026. From 2027, MEPs propose to cover emission from all journeys 75% of the revenues generated from the auctioning of maritime allowances shall be put into an Ocean Fund to support the transition to an energy efficient and climate resilient EU maritime sector.

On the separate ETS for road transport emissions – the so-called ETS II –, MEPs propose to move forward its launch by one year (in 2024) and to cover emissions from commercial road operations only. Private road transport would be covered from 2029, subject to a thorough assessment by the Commission and a new legislative proposal. Revenues from the auctioning of ETS II allowances should be channelled through the Social Climate Fund or used by Member States to finance social climate measures.

CLECAT already voiced its discontent to the non-inclusion of all road users in the ETS II: Excluding private transport from the system would only result in another financial burden for the road freight transport sector, already suffering from extremely high fuel prices, with no proper incentives to decarbonise their activities. CLECAT therefore calls on MEPs to reject these amendments to finally embrace the user-pays/polluter-pays principle for all road users and make the ETS II the flagship EU policy instrument to effectively decarbonise road transport.

On aviation the report foresees an end to free allocations to the aviation sector by 2025, two years ahead of the timetable proposed by the Commission. To ensure the gradual phase out, an accelerated decrease of 50% in free allocations is proposed for 2024, compared to the Commission proposal. MEPs also demand 75% of the revenues generated from the auctioning of allowances for aviation (except for those earmarked as own resources in the EU budget) to be used to support innovation and new technologies, including the deployment of decarbonisation solutions in the aviation sector through the Climate Investment Fund.

The proposal is scheduled to be adopted during Parliament’s plenary session in June, before negotiations with member states can begin.

Source: European Parliament