BETA


2021/0202(COD) Revision of the Market Stability Reserve for the EU Emissions Trading System

Progress: Awaiting Parliament's position in 1st reading

RoleCommitteeRapporteurShadows
Lead ENVI ENGERER Cyrus (icon: S&D S&D) BUŞOI Cristian-Silviu (icon: EPP EPP), WIESNER Emma (icon: Renew Renew), BLOSS Michael (icon: Verts/ALE Verts/ALE), VONDRA Alexandr (icon: ECR ECR), MODIG Silvia (icon: GUE/NGL GUE/NGL)
Committee Opinion ITRE GAMON Claudia (icon: Renew Renew) Jakop G. DALUNDE (icon: Verts/ALE Verts/ALE), Othmar KARAS (icon: PPE PPE), Miapetra KUMPULA-NATRI (icon: S&D S&D), Marc BOTENGA (icon: GUE/NGL GUE/NGL), Robert ROOS (icon: ECR ECR), Marco DREOSTO (icon: ID ID)
Lead committee dossier:
Legal Basis:
TFEU 192-p1

Events

2022/04/28
   CofR - Committee of the Regions: opinion
Documents
2022/04/05
   EP - Decision by Parliament, 1st reading
Details

The European Parliament adopted amendments to the proposal for a decision of the European Parliament and of the Council amending Decision (EU) 2015/1814 as regards the amount of allowances to be placed in the market stability reserve for the Union greenhouse gas emission trading scheme until 2030.

Parliament supported the present decision’s objective, that is to ensure that the current parameters of the market stability reserve (24% intake rate and minimum quantity to be placed in the reserve of 200 million allowances) are maintained beyond 2023 and until the end of phase IV of the EU Emissions Trading Scheme (EU ETS) on 31 December 2030, in order to ensure market predictability.

Members pointed out that if the rate of the total number of allowances in circulation to be placed in the reserve each year reverts to 12 % after 2023, a significant and harmful surplus of allowances in the EU ETS could disturb market stability and the proper functioning of the EU ETS, and as a result jeopardise the achievement of greenhouse gas emission reductions necessary to meet legally binding climate targets. It is therefore important to ensure that the rate does not fall below 24% after 2023 and that the minimum number of allowances to be placed in the reserve does not fall below 200 million.

Parliament introduced a number of changes in the recitals of the proposal. It emphasised the following points:

- the fact that the revision of the EU Emissions Trading Scheme (EU ETS), including its market stability reserve, is a unique opportunity to contribute to strengthening the EU's climate action ahead of the 27th Conference of the Parties (COP 27) to the UNFCCC in Egypt;

- the urgency of maintaining the Paris Agreement's objective of limiting global warming to 1.5°C in the light of the IPCC's findings in its report of 7 August 2021, entitled ‘Climate Change 2021: The Physical Science Basis ‘, as the report indicates that unless immediate and ambitious reductions in greenhouse gas emissions are made, it will no longer be possible to limit global warming to around 1.5°C or even 2°C;

- the need to act urgently on the increased frequency and intensity of extreme weather events as a direct consequence of climate change. The EU should address this urgency by stepping up its efforts and establishing itself as an international leader in the fight against climate change;

- the need to mitigate climate change to maintain and improve the health of biodiversity, which also protects human health . Parliament recalled its resolution of 28 November 2019 on the climate and environment emergency in which it urged the Commission to take immediate and ambitious action to limit global warming to 1,5 °C and to avoid massive biodiversity loss;

- the importance of achieving the EU's binding commitment to reduce net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels in a manner that is just and results in no one being left behind, including those at risk of energy poverty.

Parliament recalled that according to the 2021 Carbon Market Report, the total number of allowances in circulation increased again in 2020 to 1 579 billion from 1 385 billion in 2019. This sharp increase in the overall surplus is linked to a lower demand due to the COVID-19 crisis. The Commission estimates that it will take up to four years for that additional 2020 surplus to be absorbed, thereby further delaying the urgent need to absorb the historical surplus and make the EU ETS fit for purpose.

As a result, the Commission should continuously monitor the functioning of the reserve and ensure that the reserve remains fit for purpose in the event of unforeseeable external shocks.

Members consider that the rate of 24 % after 2023 should be established separately from the general review of Directive 2003/87/EC and Decision (EU) 2015/1814 to strengthen the EU ETS in line with the Union’s increased climate ambition for 2030 to ensure that there is market predictability.

Documents
2022/04/05
   EP - Matter referred back to the committee responsible
2022/04/04
   EP - Debate in Parliament
2022/03/16
   EP - Committee report tabled for plenary, 1st reading
Details

The Committee on the Environment, Public Health and Food Safety adopted the report by Cyrus ENGERER (S&D, MT) on the proposal for a decision of the European Parliament and of the Council amending Decision (EU) 2015/1814 as regards the amount of allowances to be placed in the market stability reserve for the Union greenhouse gas emission trading scheme until 2030.

Members support the Commission's proposal to ensure that the current parameters of the market stability reserve (24% intake rate and minimum quantity to be placed in the reserve of 200 million allowances) are maintained beyond 2023 and until the end of phase IV of the EU Emissions Trading Scheme (EU ETS) on 31 December 2030, in order to ensure market predictability. The market stability reserve allowance rate would return to 12% after 2030.

The report pointed out that if the rate of the total number of allowances in circulation to be placed in the reserve each year reverts to 12 % after 2023, a significant and harmful surplus of allowances in the EU ETS could disturb market stability and the proper functioning of the EU ETS, and as a result jeopardise the achievement of greenhouse gas emission reductions necessary to meet legally binding climate targets. It is therefore important to ensure that the rate does not fall below 24% after 2023 and that the minimum number of allowances to be placed in the reserve does not fall below 200 million.

The committee responsible introduced a number of changes in the recitals of the proposal. The report stressed the following points:

- the urgency of the need to keep the Paris Agreement goal of 1.5 °C alive has become more significant following the findings of the IPCC in its report of 7 August 2021 entitled ‘Climate Change 2021: The Physical Science Basis’. The EU ETS, and therefore the reserve, should also be aligned with the efforts to limit the global temperature increase to 1.5°C above pre-industrial levels, recognising that this would significantly reduce the risks and impacts of climate change;

- the need to act urgently on the increased frequency and intensity of extreme weather events as a direct consequence of climate change. The EU should address this urgency by stepping up its efforts and establishing itself as an international leader in the fight against climate change;

- the need to mitigate climate change to maintain and improve the health of biodiversity, which also protects human health;

- the importance of achieving the EU's binding commitment to reduce net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels while leaving no one behind in a just transition.

The Commission should continuously monitor the functioning of the reserve and ensure that the reserve remains fit for purpose in the event of future unpredictable external shocks.

Members consider that the rate of 24 % after 2023 should be established separately from the general review of Directive 2003/87/EC and Decision (EU) 2015/1814 to strengthen the EU ETS in line with the Union’s increased climate ambition for 2030 to ensure that there is market predictability.

Documents
2022/03/15
   EP - Vote in committee, 1st reading
2022/03/04
   EP - Committee opinion
Documents
2022/01/20
   EP - Amendments tabled in committee
Documents
2021/12/08
   ESC - Economic and Social Committee: opinion, report
Documents
2021/12/06
   EP - Committee draft report
Documents
2021/11/29
   PL_SENATE - Contribution
Documents
2021/11/03
   ES_PARLIAMENT - Contribution
Documents
2021/11/03
   ES_PARLIAMENT - Contribution
Documents
2021/10/07
   EP - GAMON Claudia (Renew) appointed as rapporteur in ITRE
2021/09/16
   EP - ENGERER Cyrus (S&D) appointed as rapporteur in ENVI
2021/09/13
   EP - Committee referral announced in Parliament, 1st reading
2021/07/15
   EC - Document attached to the procedure
2021/07/14
   EC - Legislative proposal published
Details

PURPOSE: to amend Decision (EU) 2015/1814 as regards the amount of allowances to be placed in the market stability reserve for the Union greenhouse gas emission trading scheme until 2030.

PROPOSED ACT: Decision of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: all sectors of the economy need to contribute to achieving those emission reductions. Therefore, the ambition of the EU Emissions Trading System (EU ETS), established by Directive 2003/87/EC of the European Parliament and of the Council, should be

adjusted to be in line with the economy-wide net greenhouse gas emissions reduction commitment for 2030.

In order to address the structural imbalance between supply and demand of allowances in the market, Decision (EU) 2015/1814 of the European Parliament and of the Council established a market stability reserve (MSR) in 2018, which has been operational since 2019.

The reserve functions by triggering adjustments to the annual volumes of allowances to be auctioned. In order to preserve a maximum degree of predictability, Decision (EU) 2015/1814 established clear rules for placing and releasing allowances in the reserve.

The European Green Deal launched a new growth strategy for the EU that aims to transform the EU into a fair and prosperous society, with a modern, resource-efficient and competitive economy. The ‘ European Climate Law ’ has made the EU's climate neutrality target by 2050 legally binding.

The Commission has presented a complementary and interconnected set of proposals as part of the 2030 Climate and Energy ‘Fit for 55’ package to achieve the greenhouse gas emission reduction target of at least 55% compared to 1990 . This ‘Fit for 55’ legislative package is the most comprehensive building block in the efforts to implement the ambitious new 2030 climate target, and all economic sectors and policies will need to make their contribution.

The ‘Fit for 55’ package, the Next Generation EU and the Multiannual Financial Framework for 2021-2027 will help to achieve the twin green and digital transitions that Europe is aiming for.

As part of this package, this proposal aims to increase the environmental contribution of the EU Emissions Trading System (EU ETS).

As the MSR Decision currently stands, the 24 % intake rate of the MSR and the minimum amount to be placed in the reserve of 200 million allowances will expire in 2023. As from 2024, the intake rate would become 12 %. 12 % intake rate would not be enough to ensure that the objectives of the MSR in terms of reducing the surplus and ensuring market resilience would still be fulfilled.

CONTENT: with this proposal, the Commission seeks to ensure that the current parameters of the MSR (intake rate of 24 % and minimum amount to be placed in the reserve of 200 million allowances) are maintained beyond 2023 and until the end of Phase IV of the EU ETS on 31 December 2030 to ensure market predictability . The MSR intake rate would revert to 12 % after 2030 .

Monitoring and reporting

The Commission will continue to monitor and evaluate the functioning of the EU ETS, including the MSR, in its annual Carbon Market Report. The initiative builds on the process based on integrated national energy and climate plans and the robust transparency framework for greenhouse gas emissions and other climate information. The Commission will use the information submitted and reported by Member States under the Governance Regulation as a basis for its regular assessment of progress. This includes information on greenhouse gas emissions,

policies and measures, projections and adaptation.

Documents

Activities

Votes

Révision de la réserve de stabilité du marché pour le système d'échange de quotas d'émission de l'UE - Revision of the Market Stability Reserve for the EU Emissions Trading System - Überarbeitung der Marktstabilitätsreserve für das Emissionshandelssystem der EU - A9-0045/2022 - Cyrus Engerer - Am 22 #

2022/04/05 Outcome: -: 488, +: 131, 0: 6
IT PL LV EE SI MT LU HR LT CY FI CZ EL DK AT SK BG BE IE HU SE PT NL RO FR ES DE
Total
71
49
7
7
5
5
5
12
10
6
12
21
16
13
17
13
14
20
12
13
21
19
27
29
56
51
94
icon: ID ID
55

Estonia ID

For (1)

1

Finland ID

2

Czechia ID

2

Denmark ID

For (1)

1
3

Netherlands ID

1
icon: ECR ECR
57

Latvia ECR

For (1)

Abstain (1)

2

Croatia ECR

1

Lithuania ECR

1

Greece ECR

1

Slovakia ECR

Against (1)

1

Bulgaria ECR

1

Belgium ECR

2

Romania ECR

1

Germany ECR

1
icon: NI NI
32

Latvia NI

Against (1)

1

Lithuania NI

1

Greece NI

1

Slovakia NI

For (1)

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2

France NI

1

Germany NI

For (1)

3
icon: The Left The Left
33

Cyprus The Left

2

Finland The Left

Against (1)

1

Czechia The Left

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1

Denmark The Left

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1

Belgium The Left

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1

Ireland The Left

3

Sweden The Left

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1

Netherlands The Left

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1

France The Left

2
icon: Verts/ALE Verts/ALE
69

Poland Verts/ALE

Against (1)

1

Luxembourg Verts/ALE

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1

Lithuania Verts/ALE

2

Finland Verts/ALE

3

Czechia Verts/ALE

3

Denmark Verts/ALE

2

Austria Verts/ALE

Against (2)

2

Belgium Verts/ALE

3

Ireland Verts/ALE

2

Sweden Verts/ALE

3

Portugal Verts/ALE

Against (1)

1

Netherlands Verts/ALE

3

Spain Verts/ALE

3
icon: Renew Renew
94

Italy Renew

3

Poland Renew

1

Latvia Renew

Against (1)

1

Estonia Renew

3

Slovenia Renew

2

Luxembourg Renew

2

Croatia Renew

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1

Lithuania Renew

Against (1)

1

Finland Renew

3

Austria Renew

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1

Bulgaria Renew

3

Ireland Renew

2

Hungary Renew

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1

Sweden Renew

3
icon: PPE PPE
161

Latvia PPE

2

Estonia PPE

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Slovenia PPE

3

Malta PPE

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1

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icon: S&D S&D
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2
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3

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A9-0045/2022 - Cyrus Engerer - Proposition de la Commission #

2022/04/05 Outcome: +: 490, -: 127, 0: 7
DE ES FR RO NL PT SE HU IE SK AT DK BG EL IT BE HR LT FI SI MT CY EE LU LV PL CZ
Total
93
53
56
29
26
19
21
13
12
13
17
13
14
18
71
20
12
10
11
5
5
5
7
5
6
50
20
icon: PPE PPE
162

Hungary PPE

1

Denmark PPE

For (1)

1

Finland PPE

2

Slovenia PPE

3

Malta PPE

For (1)

1
2

Estonia PPE

For (1)

1

Luxembourg PPE

1

Latvia PPE

2
icon: S&D S&D
124

Hungary S&D

1

Slovakia S&D

2

Greece S&D

For (1)

1

Lithuania S&D

2

Cyprus S&D

2

Estonia S&D

2

Luxembourg S&D

For (1)

1

Czechia S&D

For (1)

1
icon: Renew Renew
92
3

Hungary Renew

For (1)

1

Ireland Renew

2

Austria Renew

For (1)

1

Italy Renew

3

Croatia Renew

For (1)

1

Lithuania Renew

1

Finland Renew

3

Slovenia Renew

2

Estonia Renew

3

Luxembourg Renew

2

Latvia Renew

For (1)

1

Poland Renew

1

Czechia Renew

4
icon: Verts/ALE Verts/ALE
68

Spain Verts/ALE

3

Netherlands Verts/ALE

3

Portugal Verts/ALE

1

Sweden Verts/ALE

3

Ireland Verts/ALE

2

Austria Verts/ALE

2

Denmark Verts/ALE

2

Belgium Verts/ALE

3

Lithuania Verts/ALE

2

Finland Verts/ALE

3

Luxembourg Verts/ALE

For (1)

1

Poland Verts/ALE

For (1)

1

Czechia Verts/ALE

3
icon: The Left The Left
32

France The Left

2

Netherlands The Left

For (1)

1

Portugal The Left

4

Sweden The Left

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1

Ireland The Left

3

Denmark The Left

1

Belgium The Left

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1

Finland The Left

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1

Cyprus The Left

1

Czechia The Left

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1
icon: NI NI
35

Germany NI

Against (1)

3

France NI

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1

Slovakia NI

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2

Croatia NI

Against (1)

Abstain (1)

2

Lithuania NI

Abstain (1)

1

Latvia NI

1
icon: ECR ECR
57

Germany ECR

Against (1)

1

Romania ECR

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1
3

Slovakia ECR

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1

Bulgaria ECR

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1

Greece ECR

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Belgium ECR

2

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1

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icon: ID ID
54

Netherlands ID

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1

Austria ID

3

Denmark ID

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Finland ID

2

Estonia ID

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1

Czechia ID

Against (2)

2
AmendmentsDossier
111 2021/0202(COD)
2022/01/20 ENVI 82 amendments...
source: 704.569
2022/02/01 ITRE 29 amendments...
source: 704.763

History

(these mark the time of scraping, not the official date of the change)

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procedure/subject/3.70.02
Atmospheric pollution, motor vehicle pollution
procedure/subject/3.70.03
Climate policy, climate change, ozone layer
procedure/subject/3.70.18
International and regional environment protection measures and agreements
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url: http://www.connefof.europarl.europa.eu/connefof/app/exp/COM(2021)0571 title: COM(2021)0571
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url: http://www.connefof.europarl.europa.eu/connefof/app/exp/COM(2021)0571 title: COM(2021)0571
type
Contribution
body
ES_PARLIAMENT
events/0
date
2021-07-14T00:00:00
type
Legislative proposal published
body
EC
docs
summary
procedure/subject/3.70.02
Atmospheric pollution, motor vehicle pollution
procedure/subject/3.70.03
Climate policy, climate change, ozone layer
procedure/subject/3.70.18
International and regional environment protection measures and agreements
docs/6
date
2022-04-05T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2022-0101_EN.html title: T9-0101/2022
type
Text adopted by Parliament, partial vote at 1st reading/single reading
body
EP
events/4/summary
  • The European Parliament adopted amendments to the proposal for a decision of the European Parliament and of the Council amending Decision (EU) 2015/1814 as regards the amount of allowances to be placed in the market stability reserve for the Union greenhouse gas emission trading scheme until 2030.
  • Parliament supported the present decision’s objective, that is to ensure that the current parameters of the market stability reserve (24% intake rate and minimum quantity to be placed in the reserve of 200 million allowances) are maintained beyond 2023 and until the end of phase IV of the EU Emissions Trading Scheme (EU ETS) on 31 December 2030, in order to ensure market predictability.
  • Members pointed out that if the rate of the total number of allowances in circulation to be placed in the reserve each year reverts to 12 % after 2023, a significant and harmful surplus of allowances in the EU ETS could disturb market stability and the proper functioning of the EU ETS, and as a result jeopardise the achievement of greenhouse gas emission reductions necessary to meet legally binding climate targets. It is therefore important to ensure that the rate does not fall below 24% after 2023 and that the minimum number of allowances to be placed in the reserve does not fall below 200 million.
  • Parliament introduced a number of changes in the recitals of the proposal. It emphasised the following points:
  • - the fact that the revision of the EU Emissions Trading Scheme (EU ETS), including its market stability reserve, is a unique opportunity to contribute to strengthening the EU's climate action ahead of the 27th Conference of the Parties (COP 27) to the UNFCCC in Egypt;
  • - the urgency of maintaining the Paris Agreement's objective of limiting global warming to 1.5°C in the light of the IPCC's findings in its report of 7 August 2021, entitled ‘Climate Change 2021: The Physical Science Basis ‘, as the report indicates that unless immediate and ambitious reductions in greenhouse gas emissions are made, it will no longer be possible to limit global warming to around 1.5°C or even 2°C;
  • - the need to act urgently on the increased frequency and intensity of extreme weather events as a direct consequence of climate change. The EU should address this urgency by stepping up its efforts and establishing itself as an international leader in the fight against climate change;
  • - the need to mitigate climate change to maintain and improve the health of biodiversity, which also protects human health . Parliament recalled its resolution of 28 November 2019 on the climate and environment emergency in which it urged the Commission to take immediate and ambitious action to limit global warming to 1,5 °C and to avoid massive biodiversity loss;
  • - the importance of achieving the EU's binding commitment to reduce net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels in a manner that is just and results in no one being left behind, including those at risk of energy poverty.
  • Parliament recalled that according to the 2021 Carbon Market Report, the total number of allowances in circulation increased again in 2020 to 1 579 billion from 1 385 billion in 2019. This sharp increase in the overall surplus is linked to a lower demand due to the COVID-19 crisis. The Commission estimates that it will take up to four years for that additional 2020 surplus to be absorbed, thereby further delaying the urgent need to absorb the historical surplus and make the EU ETS fit for purpose.
  • As a result, the Commission should continuously monitor the functioning of the reserve and ensure that the reserve remains fit for purpose in the event of unforeseeable external shocks.
  • Members consider that the rate of 24 % after 2023 should be established separately from the general review of Directive 2003/87/EC and Decision (EU) 2015/1814 to strengthen the EU ETS in line with the Union’s increased climate ambition for 2030 to ensure that there is market predictability.
docs/6
date
2022-04-05T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2022-0101_EN.html title: T9-0101/2022
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2022-04-05T00:00:00
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EP
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  • date: 2022-04-05T00:00:00 title: Vote in plenary scheduled
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2022-04-04T00:00:00
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Debate in plenary scheduled
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Indicative plenary sitting date
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Debate in plenary scheduled
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Vote in plenary scheduled
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2022-03-16T00:00:00
docs
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Committee report tabled for plenary, 1st reading/single reading
body
EP
events/2/summary
  • The Committee on the Environment, Public Health and Food Safety adopted the report by Cyrus ENGERER (S&D, MT) on the proposal for a decision of the European Parliament and of the Council amending Decision (EU) 2015/1814 as regards the amount of allowances to be placed in the market stability reserve for the Union greenhouse gas emission trading scheme until 2030.
  • Members support the Commission's proposal to ensure that the current parameters of the market stability reserve (24% intake rate and minimum quantity to be placed in the reserve of 200 million allowances) are maintained beyond 2023 and until the end of phase IV of the EU Emissions Trading Scheme (EU ETS) on 31 December 2030, in order to ensure market predictability. The market stability reserve allowance rate would return to 12% after 2030.
  • The report pointed out that if the rate of the total number of allowances in circulation to be placed in the reserve each year reverts to 12 % after 2023, a significant and harmful surplus of allowances in the EU ETS could disturb market stability and the proper functioning of the EU ETS, and as a result jeopardise the achievement of greenhouse gas emission reductions necessary to meet legally binding climate targets. It is therefore important to ensure that the rate does not fall below 24% after 2023 and that the minimum number of allowances to be placed in the reserve does not fall below 200 million.
  • The committee responsible introduced a number of changes in the recitals of the proposal. The report stressed the following points:
  • - the urgency of the need to keep the Paris Agreement goal of 1.5 °C alive has become more significant following the findings of the IPCC in its report of 7 August 2021 entitled ‘Climate Change 2021: The Physical Science Basis’. The EU ETS, and therefore the reserve, should also be aligned with the efforts to limit the global temperature increase to 1.5°C above pre-industrial levels, recognising that this would significantly reduce the risks and impacts of climate change;
  • - the need to act urgently on the increased frequency and intensity of extreme weather events as a direct consequence of climate change. The EU should address this urgency by stepping up its efforts and establishing itself as an international leader in the fight against climate change;
  • - the need to mitigate climate change to maintain and improve the health of biodiversity, which also protects human health;
  • - the importance of achieving the EU's binding commitment to reduce net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels while leaving no one behind in a just transition.
  • The Commission should continuously monitor the functioning of the reserve and ensure that the reserve remains fit for purpose in the event of future unpredictable external shocks.
  • Members consider that the rate of 24 % after 2023 should be established separately from the general review of Directive 2003/87/EC and Decision (EU) 2015/1814 to strengthen the EU ETS in line with the Union’s increased climate ambition for 2030 to ensure that there is market predictability.
docs/6
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2022-03-16T00:00:00
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title: PE703.111
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ITRE
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BUŞOI Cristian-Silviu
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EPP
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Old
Revision of the Market Stability Reserve for the EU Emissions Trading System. 'Fit for 55 package'
New
Revision of the Market Stability Reserve for the EU Emissions Trading System
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docs/3
date
2022-01-20T00:00:00
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title: PE704.569
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2021-11-30T00:00:00
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url: http://www.connefof.europarl.europa.eu/connefof/app/exp/COM(2021)0571 title: COM(2021)0571
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procedure/Legislative priorities
  • title: Joint Declaration 2021 url: https://oeil.secure.europarl.europa.eu/oeil/popups/thematicnote.do?id=2066000&l=en
procedure/title
Old
EU Emissions Trading System (ETS): revision of the Market Stability Reserve. 'Fit for 55 package'
New
Revision of the Market Stability Reserve for the EU Emissions Trading System. 'Fit for 55 package'
committees/1/rapporteur
  • name: GAMON Claudia date: 2021-10-07T00:00:00 group: Renew Europe group abbr: Renew
committees/0/shadows/2
name
VONDRA Alexandr
group
European Conservatives and Reformists Group
abbr
ECR
committees/0/shadows/2
name
MODIG Silvia
group
The Left group in the European Parliament - GUE/NGL
abbr
GUE/NGL
committees/0/shadows/1
name
BLOSS Michael
group
Group of the Greens/European Free Alliance
abbr
Verts/ALE
committees/0/shadows
  • name: WIESNER Emma group: Renew Europe group abbr: Renew
events
  • date: 2021-09-13T00:00:00 type: Committee referral announced in Parliament, 1st reading body: EP
procedure/dossier_of_the_committee
  • ENVI/9/06894
procedure/stage_reached
Old
Preparatory phase in Parliament
New
Awaiting committee decision
committees/0/rapporteur
  • name: ENGERER Cyrus date: 2021-09-16T00:00:00 group: Group of Progressive Alliance of Socialists and Democrats abbr: S&D
otherinst
  • name: European Economic and Social Committee
  • name: European Committee of the Regions
procedure/other_consulted_institutions
European Economic and Social Committee European Committee of the Regions
commission
  • body: EC dg: Climate Action commissioner: TIMMERMANS Frans
docs/0/summary
  • PURPOSE: to amend Decision (EU) 2015/1814 as regards the amount of allowances to be placed in the market stability reserve for the Union greenhouse gas emission trading scheme until 2030.
  • PROPOSED ACT: Decision of the European Parliament and of the Council.
  • ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.
  • BACKGROUND: all sectors of the economy need to contribute to achieving those emission reductions. Therefore, the ambition of the EU Emissions Trading System (EU ETS), established by Directive 2003/87/EC of the European Parliament and of the Council, should be
  • adjusted to be in line with the economy-wide net greenhouse gas emissions reduction commitment for 2030.
  • In order to address the structural imbalance between supply and demand of allowances in the market, Decision (EU) 2015/1814 of the European Parliament and of the Council established a market stability reserve (MSR) in 2018, which has been operational since 2019.
  • The reserve functions by triggering adjustments to the annual volumes of allowances to be auctioned. In order to preserve a maximum degree of predictability, Decision (EU) 2015/1814 established clear rules for placing and releasing allowances in the reserve.
  • The European Green Deal launched a new growth strategy for the EU that aims to transform the EU into a fair and prosperous society, with a modern, resource-efficient and competitive economy. The ‘ European Climate Law ’ has made the EU's climate neutrality target by 2050 legally binding.
  • The Commission has presented a complementary and interconnected set of proposals as part of the 2030 Climate and Energy ‘Fit for 55’ package to achieve the greenhouse gas emission reduction target of at least 55% compared to 1990 . This ‘Fit for 55’ legislative package is the most comprehensive building block in the efforts to implement the ambitious new 2030 climate target, and all economic sectors and policies will need to make their contribution.
  • The ‘Fit for 55’ package, the Next Generation EU and the Multiannual Financial Framework for 2021-2027 will help to achieve the twin green and digital transitions that Europe is aiming for.
  • As part of this package, this proposal aims to increase the environmental contribution of the EU Emissions Trading System (EU ETS).
  • As the MSR Decision currently stands, the 24 % intake rate of the MSR and the minimum amount to be placed in the reserve of 200 million allowances will expire in 2023. As from 2024, the intake rate would become 12 %. 12 % intake rate would not be enough to ensure that the objectives of the MSR in terms of reducing the surplus and ensuring market resilience would still be fulfilled.
  • CONTENT: with this proposal, the Commission seeks to ensure that the current parameters of the MSR (intake rate of 24 % and minimum amount to be placed in the reserve of 200 million allowances) are maintained beyond 2023 and until the end of Phase IV of the EU ETS on 31 December 2030 to ensure market predictability . The MSR intake rate would revert to 12 % after 2030 .
  • Monitoring and reporting
  • The Commission will continue to monitor and evaluate the functioning of the EU ETS, including the MSR, in its annual Carbon Market Report. The initiative builds on the process based on integrated national energy and climate plans and the robust transparency framework for greenhouse gas emissions and other climate information. The Commission will use the information submitted and reported by Member States under the Governance Regulation as a basis for its regular assessment of progress. This includes information on greenhouse gas emissions,
  • policies and measures, projections and adaptation.
procedure/title
Old
EU Emissions Trading System (ETS): revision of the Market Stability Reserve
New
EU Emissions Trading System (ETS): revision of the Market Stability Reserve. 'Fit for 55 package'