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More Carbon-Market Cuts Eyed as EU Parliament Starts Debate

viernes, 03 de junio de 2016 | Mercados

The European Parliament will consider enabling faster carbon reductions in Europe’s emissions market after an assessment in 2023, the strongest signal to date that a global climate deal may prompt tougher caps on companies.

Ian Duncan, the European Union assembly’s lead lawmaker on a reform of the world’s biggest cap-and-trade program, made the proposal in a draft report that kicks off legislative work on the post-2020 overhaul. The law, proposed to adjust the Emissions Trading System to EU climate goals for 2030, needs majority backing from the Parliament and weighted majority support from national governments to take effect.

The EU, which wants to lead the global fight against climate change, submitted its 2030 goal to cut carbon by at least 40 percent from 1990 levels under a United Nations deal reached by more than 190 nations in December in Paris. The countries agreed to meet in 2023 to assess how to step up ambitions toward capping global temperature increases since pre-industrial times to 2 degrees Celsius (3.6 degrees Fahrenheit).

“The Paris agreement has set a test for all of us, and our legislation must be fit to adapt to the new targets that Paris will produce,” Duncan said in a statement on Tuesday in Brussels. “Right now the ETS is like a car without an engine, we need to ensure it is fit to do the job it should and drive emissions reductions in Europe.”

 

Source: Bloomberg