Tuesday, 20 December 2022
Interactive charts, tables and graphics removed. Subscribers see full content
Following two days of lengthy, late-night negotiations, lawmakers have agreed to a provisional agreement on the entirety of the EU ETS revision. The sweeping legislation tackles a laundry list of policy dimensions designed to strengthen and expand the European carbon market and reinforce commitment to reaching ambitious abatement goals.
Ambition for the ETS is split into three elements: reduction target, rebasing of the cap, and the linear reduction factor. The provisional agreement found compromise between Parliament’s more ambitious goals and the common Commission and Council positions. The overall abatement target for ETS covered sectors was raised to 62% from 43% as compared to 2005 levels. To achieve this, the cap will be rebased by 90 million EUAs in 2024 and 27 m...