COMMISSION ADVANCES DISCUSSIONS ON REVIEW ETS
The European Commission is accelerating work on the forthcoming revision of the EU Emissions Trading System (ETS), with the policy debate among Commissioners reportedly brought forward from 24 June to 10 June. The Commission is expected to launch the inter-service consultation on the legislative proposal on 3 June, allowing its various departments to review and provide input on the draft text ahead of its formal adoption.
The legislative proposal, currently scheduled for publication on 15 July, is expected to address the trajectory for reducing the number of carbon allowances available under the ETS. The Commission has indicated its intention to adjust the reduction pathway in order to make it more realistic, while ensuring consistency with the EU’s objective of reducing net greenhouse gas emissions by 90% by 2040 compared to 1990 levels.
The Commission continues to monitor the implementation of existing ETS legislation. As part of these efforts, on 4 June it announced the referral of Spain and Poland to the Court of Justice of the EU for failing to transpose the revised ETS rules for the aviation sector into national law. The Commission is requesting financial penalties, noting that both Member States have yet to notify the necessary national measures despite the transposition deadline having expired on 31 December 2023.