ECR group (Rapporteur Ian Duncan (ECR, UK): The Linear Reduction Factor (LRF) – which is the annual cut in carbon from 2021-30 – has been increased from 2.2% to 2.4%, which puts the EU on schedule to meet its long term 2050 emissions reduction target of at least 80% reduction of CO2. In order to tackle the glut of allowances in the market – essentially permissions to pollute that industries can buy and sell – up to one billion allowances will be cancelled. Meanwhile, the Market Stability Reserve (MSR), which is a ‘bank’ to soak up and store excess allowances, will withdraw a maximum of 24% of allowances from the market each year for four years, instead of the current 12%.
EPP group: We want a balanced reform of the Emissions Trading System (ETS) – the necessary ambitions to guarantee the implementation of the Paris Agreement, while at the same time, sufficient protection for those industrial sectors that are exposed to fierce international competition. These guarantees are included in the package adopted by the European Parliament’s Environment Committee.
S&D group: The ETS is the best tool for making sure that Europe’s industry manages the transition towards a fossil-free society and continues to be a world leader in low-emission production. With today’s outcome, S&Ds have also ensured that there will be an instrument in place to mitigate any social consequences and support workers through this transition.
ALDE group: With all exemptions, funds and state aid systems voted in, it is difficult to still call the EU’s carbon market a real market. We can and should do more to truly reward investments in innovation and competitive clean technologies.
Greens group: Regrettably, the compromise includes a number of early Christmas presents for many of the EU’s biggest polluters. A new 10 billion subsidy scheme for the most power intensive industries will be carved out from the common EU pot, seriously diluting incentives for the sector to green their power sources. The steel and fertilizer sectors will be given allowances even more generous than under the current rules and the Polish government will be able to continue to support their coal fired power sector. However, we are pleased to have secured much needed restrictions for cement and clinker manufacturers.