Wednesday, 07 December 2022
The legislative process for the revision of the EU ETS is in peril of being delayed beyond the mid-December goal.
On Friday, reporting indicated that some legislators view a deal on the creation of a new emissions trading system for road transport and buildings (ETS2) as unachievable before the end of the year.
The ETS2 is one of several files that make up the EU ETS revision. While there has been some progress, including article 29a, dropping market access restrictions, last week’s agreement on the inclusion of maritime emissions, and last night’s tentative agreement on aviation, more controversial policy dimensions have not yet seen significant progress. Additionally, REPowerEU talks (a separate but parallel legislative process) remain incomplete. For the EU carbon market, participants are mainly watching this file to understand how the sale of EUR 20bln worth of EUAs will play out. Pushing these negotia...