ENVI DEBATES DRAFT ETS REPORT
Members of the European Parliament’s ENVI Committee held an exchange of views on 10 February about MEP Peter Liese’s draft report on the revision of the EU ETS. The Rapporteur reiterated that carbon must have a price in all parts of the economy to incentivise decarbonisation. Mr Liese further supported the inclusion of maritime emissions in the ETS, the introduction of an Ocean Fund to decarbonise maritime transport and the creation of a separate ETS for road transport and buildings.
MEPs remain divided on the draft report: several MEPs welcomed the proposed amendments as a step in the right direction, with the importance of the full auctioning of ETS allowances in transport. They emphasised that revenues should feed both the Innovation and Modernisation Fund, and Member States should use revenues from the ETS towards social climate measures. Many MEPs expressed scepticism about the separate ETS for road and building: they argued that this system would increase social inequality at both national and EU level, with the Social Climate Fund being too undersized to compensate any increased costs for low-income households and small companies.
MEPs have until 16 February to submit their amendments. The adoption of the report in the ENVI Committee is scheduled in May 2022, for a vote in Plenary sitting expected in June.