On Tuesday 6th of February, during the EP Plenary session, the MEPs voted on the following topics: pesticides, CO2 emissions and clean energy innovation.
The Parliament has approved a new law that provides:
-increase on the reduction of CO2 emissions allowances on the EU Emissions Trading System (ETS) on the market (the linear reduction factor) by 2.2 percent from 2021, up from the 1.74 percent planned at present;
-a doubling of the ETS Market Stability Reserve’s capacity to mop up excess emission allowances on the market. When triggered, it would absorb up to 24% of excess allowances in each auctioning year, for the first four years, therefore increasing their price and promoting emissions’ reduction.
-two funds to promote innovation and speed the transition towards a low-carbon economy: a modernisation fund to support the upgrade of energy systems in lower-income EU member states; and an innovation fund to support renewable energy, CCS (carbon capture and storage), and low-carbon innovation projects.
Moreover, this law focuses on the prevention of carbon leakage (relocation of the companies outside Europe). The sectors at the highest risk will receive their ETS allowances for free, while less exposed sectors will receive 30% for free. Overall, the aim is to meet Paris Agreements on Climate.
Please find here the Press Release on CO2 emissions.