European business leaders are calling for the EU Emissions Trading Scheme (EU-ETS) to be reformed to include a Market Stability Reserve by 2017. They argue such a move is necessary to ensure the low-carbon economy and energy system remains on track.
The EU-ETS covers more than 11,000 factories, power stations and other installations. It operates on a cap-and-trade system, where the total amount of greenhouse gas emissions that can be emitted by the businesses involved is set and allowances can then be traded. A Market Stability Reserve would reduce the amount of emissions allowance units that the EU is permitted to auction on the global market.
In a letter to MEPs The Prince of Wales’ Corporate Leaders Group, which supports strong pro-business policy on climate change, said introducing a Market Stability Reserve earlier rather than later “will give the necessary signals to investors and industry to effectively transition to a low carbon economy and energy system” and “mitigate any downward pressure on the price of carbon from structural economic changes or other energy policies”.
The group, whose members include, BT, EDF Energy, GlaxoSmithKline, Coca Cola, Shell and Unilever, also say the 900 million emission allowance units that have been set aside and will return to auction in 2019-2020 should be included in the Reserve from the outset. This, the letter says, would help to rebalance the market and encourage countries in the decarbonisation process.
“We are convinced that the [proposed] reforms will provide the basis for meeting Europe’s 2030 commitment of at least 40% greenhouse gas emissions reductions and will put is on the road towards our 2050 goals of 80-95% greenhouse gas emissions reductions,” the letter concludes.
Philippe Joubert, chair of the Corporate Leaders Group, said, “The EU-ETS is the cornerstone of EU climate policy, so we have to get this right – it must be reformed to driver forwards green growth sooner rather than later.
“Establishing a Market Stability Reserve by 2017, with the 900 million back-loaded emissions allowance included in the Reserve from the outset, will help rebalance the emissions trading market, enable a more robust carbon price, and stimulate the transition to a low carbon economy.”
The EU-ETS is currently the largest emissions trading scheme, with the second largest opening in South Korea this week. However, when China’s national scheme becomes fully operational in 2020 it will become the largest in the world.
Photo: Greg Goebel via Flickr
Like our Facebook Page
Prominent Trends in Seafood Sustainability in 2022
Can PEMF Help To Improve Plant Growth for Eco-Friendly Gardeners
How the U.S. Government is Promoting Green Energy in the Country
12 Essential Things for Buying Your First Home
Harnessing Sustainability with User-Centric Technology Innovation
Making Your Dream of Having an Eco-Friendly Garden Come True
Tips for Optimal Waste Management in Your Home
The Agricultural Benefits of Weather Stations for Eco-Friendly Farmers
What Makes Online Furniture Eco-Friendly?
How Eco-Friendly Indian Tourists Can Apply for Visas to Brazil
7 Eco-Friendly Plant-Based Alternatives for Everyday Products
Teaching Them While They’re Young: Sustainability Tips for All Ages
Top 5 Benefits of Eco-Friendly Cars
Why Eco-Friendly Homes Should Have Outdoor Bathrooms
Merits of Sustainability Reporting: What Every Manager Must Know
Low Emission and Clean Air Zones: What You Need To Know
4 Ways To Build A Sustainable Home
Why Transitioning Your Company to an EV Fleet Makes Sense?
CEO Brian Ladin Explains How The Shipping Industry Is Going Green
A Guide to Eco-Friendly Landscaping
- Features11 months ago
Seven Health and Safety Tips for Eco-Friendly Products in a Green Home
- Energy11 months ago
Eco-Friendly Homeowners Lower Carbon Footprints through Greater Air Conditioner Efficiency
- Features10 months ago
Essential Guidelines for Eco-friendly Moving into new Home
- Features10 months ago
5 Compelling Reasons to Hire an Eco-Friendly Contractor