European ambitions to heavily cut carbon emissions over the course of the decade have been put before EU lawmakers this week.
A raft of climate proposals will be voted on in the European Parliament tomorrow, with the proposals facing multiple amendments, making the outcome uncertain for some of the most ambitious plans.
The EU considers the plans vital for keeping the bloc on track for its goal of reducing net greenhouse gas emissions 55 per cent by the end of decade from 1990 levels.
Lawmakers in parliament debated eight proposals today, and will vote on them tomorrow, so they can be pushed through for negotiations with EU countries on final legislation later this year.
As part of the vote, members of parliament have been considering hundreds of amendments that could increase or weaken the impact of the EU’s climate policies.
Proposals up for the vote tomorrow include a phase-out of free CO2 permits by 2030, 2032 or 2035, and vote on the EU plans for a 100 per cent cut to CO2 emissions from new cars by the middle of the next decade.
The trading bloc’s carbon market is also under scrutiny, with plans to cut emissions across the carbon market by 61 per cent by 2030 set to be voted on.
This could be strengthened by activists pushing for a 67 per cent cut, while there is also a group of MEPs pushing for restrictions on the purchase of allowances.
Commerzbank analyst Barbara Lambrecht said: “Nervousness has increased in the run-up to today’s discussion of and tomorrow’s vote on the reform of EU emissions trading in the EU parliament: the carbon price plunged by more than 6% yesterday to hit a good €81 per ton.”
“The cause for concern is presumably an amendment proposed by a group of MEPs that would only allow emitters and their financial intermediaries to buy and sell allowances, thereby limiting the market access of financial investors. Any such limitation would reduce liquidity on the market, which is also why the EU Commission had spoken out against this.”