Sunday

1st Oct 2023

MEPs reject move to fix flagship climate policy

  • A major setback to the EU's climate policy, says critics of Tuesday's vote (Photo: DerGuy82)

The European Parliament on Tuesday (16 April) voted against a proposal to revive one of its flagship climate policies, a move green groups called a "historic failure."

The vote concerned a tweak to the Emissions Trading Scheme (ETS), suffering from a plunge in carbon prices due to the excess number of carbon permits in the markets.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

The proposed reform - known as backloading - would have postponed the auctioning of 900 million carbon allowances from 2013-2015 until 2019-2020.

The fewer permits - it was hoped - would lead to a hike in the carbon prices, with the current price level so low that there is virtually no incentive for companies to cut their emissions.

Ahead of the vote, MEPs were strongly lobbied by environmental and business organisations.

In the end, 334 voted against the reform, and 315 in favour.

Straight after the vote, carbon prices dropped to a new low of €2.63 a tonne.

The European Commission, which proposed the reform, said it "regrets" the outcome. Climate change commissioner Connie Hedegaard said she would "reflect on the next steps. The market, the investors and our international partners are all awaiting."

Green groups condemned the result.

“Today’s vote is a historic failure. In its present form, the carbon market will not stop a single coal plant from being built," said Joris den Blanken from Greenpeace.

"MEPs have voted against the polluter pays principle and putting a market-oriented price on carbon emissions," said Remi Gruet of the European Wind Energy Association.

Eurodeputies were split over free market ideology.

Conservative MEPs, who largely voted against the reform, said the commission should not be interfering in a market process. This point was also espoused by business lobby group BusinessEurope which welcomed the rejection of "political interference."

The conservatives were strongly criticised by their left-wing counterparts who accused them of having "failed to act responsibly."

"This is the beginning of the re-nationalisation of European climate politics. This kind of politics plays into the hands of the climate sceptics," said Socialist MEP Matthias Groote.

Symbolic resonance

The result is likely to have as much symbolic as well as practical resonance.

The EU has long viewed itself as the global lead in climate change policies.

But the financial and economic crisis of the recent years has knocked environment policy off the EU's political agenda, amid arguments that industry should be allowed to recover rather than adhere to potentially constraining climate legislation.

Tuesday's vote also comes at a sensitive time globally, with talks underway to find a new international climate change agreement for post 2020 by 2015.

Hedegaard for her part noted that the issue will go back to the environment committee for reconsideration.

Meanwhile member state representatives will continue to discuss the issue - largely favoured by governments - in two meetings this week.

Irish environment minister Phil Hogan, in charge of the talks, said: "The immediate need to address the carbon price issue in the ETS remains a clear priority."

"While I can understand concerns around intervening in a market-based instrument, the reality is that the EU is faced with an exceptional policy situation which demands an exceptional policy response," he said.

IEA says: Go green now, save €11 trillion later

The International Energy Agency finds that the clean energy investment needed to stay below 1.5 degrees Celsius warming saves $12 trillion [€11.3 trillion] in fuel expenditure — and creates double the amount of jobs lost in fossil fuel-related industries.

Opinion

How do you make embarrassing EU documents 'disappear'?

The EU Commission's new magic formula for avoiding scrutiny is simple. You declare the documents in question to be "short-lived correspondence for a preliminary exchange of views" and thus exempt them from being logged in the official inventory.

Latest News

  1. EU women promised new dawn under anti-violence pact
  2. Three steps EU can take to halt Azerbaijan's mafia-style bullying
  3. Punish Belarus too for aiding Putin's Ukraine war
  4. Added-value for Russia diamond ban, as G7 and EU prepare sanctions
  5. EU states to agree on asylum crisis bill, say EU officials
  6. Poland's culture of fear after three years of abortion 'ban'
  7. Time for a reset: EU regional funding needs overhauling
  8. Germany tightens police checks on Czech and Polish border

Stakeholders' Highlights

  1. Nordic Council of MinistersThe Nordic Region is stepping up its efforts to reduce food waste
  2. International Medical Devices Regulators Forum (IMDRF)Join regulators, industry & healthcare experts at the 24th IMDRF session, September 25-26, Berlin. Register by 20 Sept to join in person or online.
  3. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  4. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA
  5. International Medical Devices Regulators Forum (IMDRF)Join regulators & industry experts at the 24th IMDRF session- Berlin September 25-26. Register early for discounted hotel rates
  6. Nordic Council of MinistersGlobal interest in the new Nordic Nutrition Recommendations – here are the speakers for the launch

Stakeholders' Highlights

  1. Nordic Council of Ministers20 June: Launch of the new Nordic Nutrition Recommendations
  2. International Sustainable Finance CentreJoin CEE Sustainable Finance Summit, 15 – 19 May 2023, high-level event for finance & business
  3. ICLEISeven actionable measures to make food procurement in Europe more sustainable
  4. World BankWorld Bank Report Highlights Role of Human Development for a Successful Green Transition in Europe
  5. Nordic Council of MinistersNordic summit to step up the fight against food loss and waste
  6. Nordic Council of MinistersThink-tank: Strengthen co-operation around tech giants’ influence in the Nordics

Join EUobserver

Support quality EU news

Join us