21 January 2022

ENVI DRAFT REPORT ON ETS

On 18 January, the ENVI Committee published the draft report of MEP Peter Liese (EPP, Germany), Rapporteur on the Commission’s proposal for the revision of the ETS Directive. Mr Liese tabled 101 amendments, which will drive the negotiations among MEPs within the Committee.

The draft report introduces several amendments to the introduction of a separate carbon market for road transport and the building sector, alongside the EU’s existing Emissions Trading Scheme (ETS).  The Rapporteur wants to accelerate the introduction of the system and introduce it as of 2024 instead of 2025 as proposed by the Commission. Mr Liese wants to give Member States the option of an ‘opt-out’ for private transport and private buildings until 2027. Commercial operators could not opt out. More revenues would be directed towards the Social Climate Fund and national social climate measures.

On maritime transport, the Rapporteur proposes a faster phase-in of the auctioning of allowances than proposed by the European Commission. According to the draft report, 100% of verified emissions should be auctioned by 2025, instead of 2026. In addition, the draft report proposes the creation of an Ocean Fund, as previously asked for by the European Parliament, to support projects and investments on innovative technologies to decarbonise maritime transport.

Finally, the draft report emphasises the need to develop passenger and freight rail transport by allocating a certain share of revenues to this mode of transport, either via the general ETS (10%), the Innovation Fund or the ETS2, where Member States shall use 10% of their revenues to develop rail transport.

Source: Peter Liese’s website