The European Parliament today voted in support of the back-loading proposal, designed to temporarily restrict the supply of emissions allowances in the EU emissions trading scheme (ETS). The decision reached today comes after months of hard negotiations to find a viable compromise after the parliament initially rejected the proposal.
Commenting on the outcome of the vote Sandbag’s Rob Elsworth said:
“This is a positive outcome after months of uncertainty. All eyes are now on Member States to reach a position as soon as possible. Once a backloading decision is agreed, this must act as a stepping stone to deeper structural reforms of the EU ETS that restore the balance of supply and demand in the carbon market and prevent the ETS from compromising the environmental effectiveness of other climate policies.”