MEPs will vote on the reform of the EU’s Emissions Trading System in the plenary session on the 17-20 April

The EU Emissions Trading System (ETS) was introduced in 2005. It is the foundation of the EU’s policy to combat climate change and is a key tool for cost-effectively working towards a reduction in greenhouse gas emissions.

EU emissions have been cut by 41% in the sectors covered since the introduction of the ETS, however, the proposed reforms are anticipated to cut emissions further and bring the EU closer to climate neutrality.

A debate will take place today, being 17 April 2023, with Parliament expected to vote on 18 April regarding the proposed key pieces of legislation which following the 14 July 2022 “Fit for 55 in 2030 package” agreement. European Climate Law seeks to reduce greenhouse gas (GHG) emissions by 2030 to at least 55%. The  planned reforms to the ETS, should they be voted through, will require emissions to be cut by 62%, phasing out free allowances to companies and creates a separate new ETS II for fuel for road transport and buildings that will put a price on emissions from these sectors by 2027.

Parliament are also voting to revise the ETS for aviation and whether to include GHG emissions from the maritime sector in the ETS.

It is anticipated that between 2021 and 2030, more than 6 billion allowances will be allocated to the industry for free.

Stay tuned for our updates regarding the EU’s Emissions Trading System reforms and our thoughts on the vote.