Von der Leyen: “Milestone”
EU Parliament decides to expand emissions trading
04/18/2023, 4:40 p.m
Anyone who causes emissions must buy certificates – European emissions trading is a central instrument of climate policy. Now the EU Parliament has passed a reform that will make other sectors accountable.
In the fight against climate change, the European Parliament has decided on a massive expansion of emissions trading. In Strasbourg, the plenary session of Parliament approved a reform that for the first time also includes shipping and the building sector. For them, the following will apply in the future: whoever emits greenhouse gases that are harmful to the climate must buy pollution rights.
The CDU MEP Peter Liese, who helped negotiate the package, speaks of the “greatest climate protection law of all time”. It is part of the “Fit for 55” climate plan, with which the EU aims to reduce its greenhouse gas emissions by at least 55 percent by 2030 compared to 1990 levels. EU Commission President Ursula von der Leyen called the parliamentary vote a “milestone” on Twitter. The final approval of the member states is still pending.
European emissions trading (ETS) has existed for almost two decades. The idea: the emission of carbon dioxide (CO2) gets a price – those who emit less benefit, and those who emit a lot have to buy certificates.
Fewer allowances for airlines
With the reform, shipping is now included for the first time. In addition, airlines that already need emission allowances for flights within the EU will gradually receive fewer free allowances. From 2026, they should then pay entirely for the pollution rights themselves.
In addition, there should be a separate trade in pollution certificates for buildings and road traffic. In Germany, the so-called Fuel Emissions Trading Act has been in force for motor and heating fuels since 2021.
In order to help disadvantaged consumers and companies, the EU is also planning a climate social fund worth billions. In addition, a kind of climate tariff for third countries will be introduced, the so-called carbon dioxide border adjustment mechanism.