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The EU Emissions Trading System: All You Need To Know About The World’s Largest Carbon Market


Tuesday 22 July 2014 from 15:00 to 17:00 European Parliament – Room JAN 6Q1



Matthias GROOTE, S&D



The EU Emissions Trading System (EU ETS) is the largest carbon market in the world covering more than 11,000 power stations and industrial plants in 31 countries, as well as intra-EU flights. The EU ETS puts a limit on the amount of greenhouse gas emissions that big installations can emit. This cap is reduced over time so that total emissions are reduced. Companies participating in the system receive or buy emission allowances which they can trade with one another: one emission allowance allows for one tonne of CO2 to be emitted. Companies that cut their emissions more aggressively will have spare allowances to sell to other companies who did not sufficiently cut their emissions.

Currently, the EU’s carbon market suffers from a large amount of excess emissions allowances which has depressed the carbon price to a level that is too low to promote low-carbon solutions. In the coming years, EU policymakers have the chance to improve the design of the EU’s carbon market as the proposal to enact a market stability reserve will be negotiated and new legislative proposals to implement the 2030 framework are expected in early 2015.

This event provided the opportunity to learn more about the EU ETS and the recent political developments. In the context of the legislative proposals that have been and presented. Discussions focused on the policy measures that are needed to fix the EU ETS. (see presentations below)


15:00     Introduction, MEP Peter Liese

15:15     The current state of the EU ETS, Alex Luta, Sandbag

15:35     The Commission’s proposal for a Market Stability Reserve (MSR), Jos Delbeke, Director General, DG CLIMA, European Commission

15:55     Insights into the latest political developments, Femke de Jong, Carbon Market Watch

16:15     Discussion, Q&A, moderated by MEP Gerben-Jan Gerbrandy

16:45     Closing remarks, MEP Bas Eickhout and MEP Matthias Groote


Policy Brief: What’s needed to fix the EU’s carbon market: Recommendations for the Market Stability Reserve and future ETS reform proposals




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