Carbon Market Watch welcomes the European Commission’s proposal to end the EU’s dependency on international offsets in its 2030 climate package but says the failure to address the current oversupply of 2 billion emission permits in the European emissions trading scheme will weaken the real-world impact of the new targets.
Eva Filzmoser, Director of Carbon Market Watch said: “Despite announcing a weaker overall target than is necessary, we welcome the European Commission’s proposal to build the EU’s future climate framework on domestic measures. Member States and the European Parliament must support the move and keep the door to international offsets firmly shut.”
Carbon offsets from emissions reduction projects in developing countries have been allowed under the current EU climate framework but have significantly contributed to the current glut of emissions permits in the EU ETS, thereby undermining the EU’s 2020 climate targets. Numerous studies also show that carbon offsetting does not reduce real-world emissions in practice. It is estimated that only 40% of all offset credits sold actually represent real emissions reductions.
The package presented today also includes a ‘market stability reserve’ for the failing EU Emissions Trading System but the proposed measures would only take effect after 2020.
“This proposal will do nothing to address the massive oversupply of 2 billion emission permits that will haunt the European carbon market until the end of the decade. This will significantly weaken today’s proposed 40% GHG target for 2030. It is extremely disappointing and irresponsible that the Commission has failed to address this problem in the short term.” said Filzmoser.
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