24 June 2022

EUROPEAN PARLIAMENT ADOPTS ETS REVISION

On 22nd June, the European Parliament adopted in Plenary session with a large majority its amendments to the revision of the EU Emissions Trading System (ETS). MEPs voted for a second time on this file, after failing to reach a majority in a first vote on 8 June. 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 reiterated their 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 confirmed the agreement reached in ENVI by moving forward its launch by one year (in 2024) and by covering 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. MEPs also propose to insert a price cap of €50 if the average price exceeds this cap until 2030. 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 regrets the non-inclusion of all road users in the ETS II. As repeatedly pointed out, excluding private transport from the system would only result in another financial burden for the road freight transport sector, without serving as a decarbonisation incentive to transport operators, as long as zero emission alternatives are not sufficiently available. CLECAT will continue to call for the inclusion of all road users in the ETS II to finally embrace the user-pays/polluter-pays principle and make the ETS II the flagship EU policy instrument to effectively decarbonise road transport.

The Parliament is now ready to enter institutional negotiations with the Council, once it will adopt its position on the revision of the ETS, possibly during the Environment Council on 28 June.

Source: European Parliament