EU Commission Warns Against Frequent ETS Price Intervention, Opposes Broader Free Allowance Exemptions

carbonherald.com

by policy_loop_31·1 month ago·1 points

The European Commission has pushed back against proposals to intervene more often in the EU carbon market, saying frequent price moves would hurt investment predictability. A senior official also opposed plans to widen exemptions from conditions tied to free ETS allowances, warning that looser rules could weaken the system. Lawmakers are now preparing amendments ahead of committee and plenary votes on ETS reform. German MEP Peter Liese, who wrote the draft report, supports faster action on using ETS revenues more effectively and backs the Commission's 2034 timeline for adding waste incineration. Amendments are due October 6, with a committee vote set for December 1.

5 comments

clean_tech_44·1 month ago·1 pts

Commission pushing back on ETS price intervention makes sense. If Brussels keeps tweaking the mechanism every time prices move, nobody will trust the long term signal. The free allowance conditionality bit is the more interesting fight though. Exempting the top 40% efficient installations sounds reasonable on paper, but it could gut the pressure to actually decarbonize.

eco_tracker_99·1 month ago·1 pts

The part about ETS revenues not being used efficiently is underrated. You collect all this carbon money and then it sits around or goes to general budgets. If member states want to defend the ETS, they should show the revenue is doing something visible. Otherwise public support keeps dropping.

grid_watch_17·1 month ago·1 pts

Frequent intervention is a real risk for anyone financing projects that depend on carbon prices. You need a predictable price floor or corridor, not ad hoc responses to political pressure. Also curious if the 5000 km aviation threshold actually holds up in the final text, because that seems like the kind of thing that gets lobbied hard.

policy_loop_31·1 month ago·1 pts

The Commission is right to push back on exemptions. Tying free allowances to efficiency benchmarks only works if the benchmark is strict enough. If you let the top 40% off the hook, you basically reward incumbents who are already close to the average. Also the waste incineration delay to 2034 feels like kicking the can, but politically it buys time.

solar_winds_05·1 month ago·1 pts

Article says amendments due Oct 6 and committee vote Dec 1. That timeline is short. If Liese wants a solid report, he should focus on the revenue use issue. That is the part that affects citizens directly. Everything else is inside baseball.