Lead MEP proposes stronger regulation of emissions trading / Market reacts immediately
The EPP MEP Dr Peter Liese, as lead rapporteur, proposed amendments for the stronger regulation of emissions trading. As a result, the market reacted immediately with the ETS price falling. According to experts, this will curb the rise of electricity prices across Europe. "High energy prices are a major problem for many families, especially low-income ones, as well as businesses, particularly SMEs. Hence, immediate action is needed. For me it is very clear: the biggest problem is our dependence on fossil fuels, especially Russian gas. Following many discussions with experts, it is clear that Russia is deliberately driving up the price of gas and this is not only a problem for gas consumers, but also the main reason for the rise in electricity prices. Therefore, it is imperative to accelerate the transition to renewable energy and ensure energy efficiency. The Green Deal is the solution, not the problem. Nevertheless, immediate action is required, which is why I have put forward a 4-point plan that includes the following steps:
1. Expanding renewable energies and energy efficiency
2. Lowering taxes and levies, especially on electricity
3. Curbing the ambitions of the EU ETS
4. Introducing regulation for the market of emissions trading certificates."
Liese tabled his amendments on Wednesday and the ETS price has fallen as a result. Already the announcement last Wednesday had caused the price to drop from 96 Euros to 90 Euros. By now, the price is below 90 Euros. "I have had many discussions with experts and have come to the conclusion that citizens and the economy are so far being insufficiently protected against price shocks. While there does exist an article (29a) that is supposed to dampen price increases, this article has not worked despite the huge price increase in recent months. That is why it needs to be tightened. Specifically, I propose that article (29a) can be triggered more quickly. As of now, the article provides that if prices rise excessively, a committee will meet to assess the situation and subsequently take action if considered necessary. Instead, I propose that if there is an excessive increase, 100 additional allowances should automatically be released with the respective committee subsequently adopting additional measures. This way, the EU can react more quickly to excessive prices."
It is also necessary to monitor the market better. "I think it is fundamentally important not to intervene too strictly here. This can also have severe negative consequences as a high CO2 price also helps with the important goal of climate neutrality. However, if the price increase is driven by speculation and manipulation, politicians must act. Following the submission of a report by the European Securities and Markets Authority, the Commission must immediately propose an amendment to the legislation. This does not have to be regulated exclusively using the emissions trading directive. Rather, other instruments of financial market supervision can also be employed for this purpose. I am confident that my amendments will not only be supported by my colleagues in the European Parliament, but also by the EU Commission and the Council of Ministers," said the environmental spokesperson of the largest group in the European Parliament.