The European Parliament approves part of the ENVI proposal
16 February 2017 | Markets
Yesterday, Wednesday 15th of February, the European Parliament voted on the new reform of the European directive of the EU ETS for the upcoming period of 2021-2030.
Below, we would like to share a summary of the main developments voted on the ENVI proposal:
As being inferred from previous discussions this week, Parliament's plenary has just adopted a less ambitious EU ETS Directive reform than the ENVI proposal. The EUA, which had already discounted the news, is currently around € 5.08/t.
The proposal adopted today by the Parliamentary Plenary eliminates the most controversial aspects of the Environment Committee's proposal, such as increasing the LRF to 2.4% annually, keeping the initial proposal at 2.2%, and eliminating the free allocation for the cement sector from 2021.
However, the proposal does maintain certain ambitious aspects, such as a 24% rate for Market Stability Reserve during the first 4 years of operation, the cancellation of the same 800Mt mechanism by 2021, and the elimination of the free allocation to those sectors not exposed to significant risk of carbon leakage.
Once the common position of the Member States on the reform of the EU ETS is established, the so-called "trialogue" will begin, which will lead to the adoption of a definitive text.
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Source: Factor Trading