The cap on CO2 emissions is still falling too quickly, Peter Liese argues in a draft of his report on EU ETS reform
Factory and power plant operators should be allowed to emit more CO2 than planned up to 2035, the lawmaker tasked with steering a reform of the EU Emissions Trading System (ETS) through the European Parliament is set to propose.
The German conservative plans to tweaks the ‘linear reduction factor’ (LRF), which determines the rate at which the annual supply of emission allowances is reduced over time, according to a document seen by Euractiv.
The permits currently trade at around €85 per tonne of CO2 or equivalent, although many sectors continue to receive large volumes for free.
The European Commission proposed to reduce this value from the current 4.4% to 3.7% between 2031 and 2035, and to 1.7% thereafter – a move that would significantly lengthen Europe’s decarbonisation pathway.
