10 September 2021


On 9 September, MEPs from the Environment, Public Health and Food Safety (ENVI) Committee held an exchange of views with DG CLIMA Director Beatriz Yordi on the revision of the EU Emissions Trading Scheme (ETS). The European Commission’s Fit for 55 package proposes to extend the current EU ETS to maritime transport, gradually remove free allowances for the aviation sector and create a new separate ETS system for road transport and heating sectors. To mitigate the consequences of higher fuel and heating costs, a new EU Social Climate Fund would be set up and financed through revenues coming from the auctioning of allowances.

MEPs mostly welcomed the ambition of the Commission, as they considered the ETS central in delivering emissions reductions. However, they remained sceptical towards the separate ETS for the buildings and road transport sectors. Peter Liese (EPP, DE) noted that the increased costs of fuels would have a social impact on companies and low-income households, and Michael Bloss (Greens/EFA, DE) added that the Social Climate Fund will not be enough to mitigate those consequences.

MEPs also questioned the scope of the extension of ETS to maritime transport, as it would cover only 50% of extra-EU voyages, and Jutta Paulus (Greens/EFA, DE) criticised the gradual phase-in of the ETS, which can be considered as an allocation of free allowances for the maritime sector. Emma Wiesner (Renew, SE) noted that the Innovation Fund should receive more revenues from the auctioning of allowances to support the uptake of new technologies to reduce CO2 emissions, such as alternative fuels. Bas Eickhout (Greens/EFA, NL) considered that the phasing-out of free allowances for the aviation sector should happen much faster in order to reduce emission form this sector.