Picture of Cefic director general Marco Mensink

Cefic welcomes deal to reform EU Emission Trading Scheme

Published:  22 November, 2017

The political deal to reform the EU Emission Trading Scheme (EU ETS) has been welcomed by the European Chemical Industry Council (Cefic), says Cefic director general Marco Mensink.

The council, European Parliament and European Commission have reached a provisional compromise deal addressing a number of critical elements which were widely debated since the beginning of the reform process in 2015.

Speaking in response to the draft, Marco Mensink said: ‘We congratulate the negotiators for striking a deal that tried to find a balance between a stronger EU ETS and a fair treatment of EU industries.’

The draft includes increasing the volume of the Innovation Fund which will promote low carbon technologies. It also includes an increase of free allowances for industry, which increases the likelihood that the best performing companies will receive the free allocation they need. This is one of the core principles of the EU ETS and Cefic position.

The provisional agreement has rejected a tiered approach to free allocations, which would have significantly impacted many sectors by causing a severe under-allocation as a result of preferential treatment for a select few.

‘Our analysis is positive, considering the long negotiations and extreme positions taken before. We understand the need to improve the EU ETS. Industry will be impacted in many places. However we also see the need to close the debate now, ‘said Marco Mensink.

In the year ahead, a lot of implementation details are still to be decided. Among them, whether or not the best performing companies in Europe will face additional direct and indirect carbon costs.

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