United Nations Secretary-General Ban Ki-moon spoke in support of the European Parliament proposal to delay the sale of some 900 million tonnes of pollution credits in a bid to raise carbon prices.
The European Parliament has voted 344 – 311 favoring the temporary delay of the sale of carbon dioxide permits, a move that Mr. Ban has pointed out is a step in the right direction.
“The vote sends a clear signal that the European Union remains committed to carbon pricing,” the Secretary-General said in a statement.
The U.N. chief hopes to see more structural reforms to follow in order to strengthen the E.U.’s carbon market.
“Europe must continue its fight against climate change. An effective and well-functioning carbon market is a key tool to reduce greenhouse gas emissions cost-effectively,” said Mr. Ban.
The parliament’s vote temporarily postpones the sale of up to 900 million tonnes of pollution credits in the coming years in an attempt to raise carbon prices which have been at a record low.
“The delay is first and foremost about buying time to stabilize carbon price and thereby the entire Emissions Trading System. We need to have an in-depth debate on reconstructing measures that account for the present economic situation, including low carbon prices,” said European Parliament member Matthias Groote at a session back in July 3.
Mr. Groote has been responsible for steering the legislation through the Parliament. During the session, he explained that postponing the sale of the oversupply of carbon permits is the “best deal possible to save the E.T.S.” before engaging in long-term reform of the system.
“It brings certainty to the markets and avoids the E.U. missing its carbon reduction targets,” the Parliament member noted.
Mr. Groote assured that the plan adopted will not be detrimental to E.U. companies, and instead will represent an investment in future generations.
“Our goal is a reduction of carbon dioxide, but also a healthy and more sustainable industry. We will start negotiations with E.U. ministers as soon as possible and seek a common solution that will allow the E.T.S. to fulfill its purpose,” said Mr. Groote.
The E.T.S. is a cornerstone of the E.U.’s policy to combat climate change and its key tool for reducing industrial greenhouse gas emissions cost-effectively. It is the first international system for trading GHG emission allowances which covers more than 11,000 power stations and industrial plants across 31 countries, as well as airlines. – EcoSeed Staff