EU Deeply Divided Over Carbon Market Reform

Reuters, 23 February 2015 Barbara Lewis

Prospects for early reforms to prop up the EU’s Emissions Trading System (ETS), the world’s biggest carbon market, hang in the balance ahead of a closely watched vote on Tuesday with members of the European Parliament divided over how soon to act.  Parliamentary sources said negotiations between rival political groups are likely to continue up to the vote at around 1400 GMT, which still needs to be followed by a plenary vote and to get the backing of member states.  An email seen by Reuters from the social democrats alliance said it could not accept a Dec. 31, 2018, date put forward as a compromise by the main centre-right group, the European People’s Party (EPP), but it might be willing to support Jan. 1, 2018 for beginning ETS reforms.  Parliamentary sources said the Greens and the ALDE liberal alliance also rejected the Dec. 31 date, but added the EPP was reluctant to shift.  Both 2018 dates are earlier than the executive European Commission’s 2021 proposal, which coal-producing Poland and energy-intensive industry say is soon enough…..Full Story….