Davies/ Davey: Reform of EU emissions trading scheme crucial for green investment

Chris Davies MEP, Liberal Democrat Environment Spokesman in the European Parliament, today asked what steps the European Commission is taking to reform the EU’s emissions trading system (ETS) in a parliamentary question to Environment Commissioner Connie Hedegaard.

Chris Davies said:

“The back-loading of carbon allowances approved by the European Parliament in July was an important step, but it was just a temporary sticking plaster.

“To really fix the EU’s Emissions Trading System, we need to treat the cause not just the symptoms. That means long-term structural reforms to shore up investment in green technologies, and the forging of links with other trading schemes to achieve a truly global carbon market.

“Structural reform of the ETS would also level the playing field for British industry, by bringing the price of carbon in the EU into line with our own ambitious carbon floor price.”

Energy and Climate Change Secretary Ed Davey added“Reform of the ETS is essential if we are to meet the EU’s 2050 objectives and promote the transition to a low-carbon economy.

“The UK will continue to work other Member States to drive green growth and ensure that the EU takes the global lead in the fight against climate change.”

Commissioner Hedegaard responded that the Commission is working to identify structural measures to address imbalances in the ETS in a sustainable way, and supports international links with emissions trading systems in other countries including Canada, Australia, China and South Korea. The EU and Switzerland envisage a full link to start in January 2015.

Notes to Editors

The text of the parliamentary question tabled to the European Commission by Chris Davies MEP can be found here.

Today’s European Parliament debate on the EU’s carbon market can be watched here.

The Commission is expected to come forward with proposals for reform of the Emissions Trading Scheme by the end of this year. More information about the EU’s efforts to develop an international carbon market can be found here.

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