In its vote yesterday the European Parliament’s environment committee backed the compromise amendments tabled by the rapporteur Ivo Belet. The compromise proposals contain the following:
- MSR is established in 2018 and shall be operational by December 2018.
- The thresholds of the MSR are identical to those in the original proposal of the European Commission. If the number of allowances in circulation is more than 833 million, 12% of the surplus should be put into the reserve. If the number of allowances in the market falls to 400 million, 100 million should be released from the reserve.
- Surplus allowances shall be placed in the reserve without undue delay by modifying the auctioning calendar immediately after the publication of the amount of the surplus.
- Back-loaded and unallocated allowances shall be placed directly into the reserve.
- 300 million allowances from the unallocated allowances will be made available to promote breakthrough technologies.
- The Commission is asked to review the ETS Directive in view of effectively promoting the competitiveness of EU industries at risk of carbon leakage.
To put the legal procedure on the fast track, MEPs gave a mandate to the Rapporteur to start trilogue negotiations (with representatives of the European Council, Parliament and Commission) based on the text adopted in the ENVI Committee. As it was not sure that the rapporteur gets this mandate, there are no dates for the trilogue negotiations yet, but – as usual – we will keep you updated about the next steps of the legal procedure.