While the previous trading in emission rights basically only covered industry and power plants, it is now to be extended to the housing and transport sector, according to a draft from the EU Commission that was presented to Reuters on Wednesday.
“Fit for 55”
With the reforms, the EU wants to achieve its new, more stringent goal of reducing CO2 emissions by 55 percent compared to 1990 by 2030. In mid-July she wants to present her proposal for “Fit for 55”. It has to be approved by the Member States and the European Parliament. As the reforms have significant economic consequences, the process is likely to take over a year.
Emissions trading is the EU’s most important climate protection instrument. The rights to CO2 emissions must be auctioned by the companies. Those who produce in a particularly climate-friendly way need less or can sell excess rights again on the stock exchange. Over the years the EU has been reducing its rights. Most recently, the price for the certificates rose significantly in anticipation of the EU reforms, which is putting coal-fired power plant operators under pressure.
more on the subject
According to the draft, the Commission wants, on the one hand, to significantly reduce the number of surplus rights that have not yet been granted with one cut. On the other hand, the annual reduction in rights is also to be accelerated. In addition, sea shipping is to be included for the first time.
The EU now also wants to introduce new trade for the transport and heating sectors. To this end, there should initially be a separate trading system that could only be merged with the rest of the emissions trading at a later date. The background to this is that fuel, heating oil and gas are becoming more expensive in this way, which directly affects people. The EU wants to ensure a moderate price increase. In Germany, a CO2 price has been in effect here since the beginning of the year. It could then merge into the EU’s new trading system.
Great Britain prefers coal exit
The UK has brought its coal phase out by one year to 2024. This was confirmed by the British government on Wednesday after the accelerated phase-out was announced last year. From October 1, 2024, no more coal will be used to produce energy in the United Kingdom. In 2020, the share of electricity from coal was 1.8 percent – just under a decade earlier it was 40 percent.
London. The British government has yet to initiate the relevant law. One will do this “at the earliest opportunity”, it said in a communication. The UK’s much earlier coal phase-out compared to Germany is also possible because the country continues to rely on nuclear power for energy generation.
As the host of the UN world climate conference COP26, which is to take place in November in the Scottish city of Glasgow, Great Britain is also calling on other states to move forward with their exit from coal and to set themselves more ambitious goals. According to experts, much more ambitious measures are necessary in order to still be able to achieve the 1.5 degree target agreed in Paris.
