MEPs reject reform of carbon emissions trading scheme

Members of the European Parliament (MEPs) defeated a proposal that was intended to stop falling prices of carbon in the carbon-emissions trading scheme through a reform known as backloading.

Backloading could have postponed auctions of an estimated 900 carbon permits by member states. Currently, such auctions are held regularly. Coal-fired power plants and other industries must buy carbon permits to emit carbon dioxide. The permits typically are issued for a period of 5-7 years.

MEPs voted 334-315, defeating the proposed reform that was suggested by the European Commission. The EU’s Council of Environmental Ministers said it would attempt to devise a different plan.

EU’s Emissions Trading System (ETS) was launched in 2008, and the current scheme runs to 2020. Analysts and others have warned that the ETS is faltering (OGJ, Feb. 25, 2013, p. 17).

Greenpeace called the vote an “historic failure” to mend the carbon trading market. Barring a way to curb an oversupply of permits, the ETS cannot “dissuade polluters and promote investments in cleaner production,” said Joris den Blanken, Greenpeace EU policy director.

Poland Environment Minister Marcin Korolec said, “It was a vote of reason.” Poland was among opponents of backloading, suggesting the proposal could slow economic development if implemented.

Finland MEP Eiga-Riitta Korhola, said, “In the present economic situation, the decision of backloading would be a wrong signal for households and industries alike. The burden of rising costs is not needed now.”

Related Articles

White House eyes steps to curb oil, gas methane emissions

03/29/2014 The White House announced additional steps to reduce methane emissions from oil and gas operations as part of a broader strategy. They included reg...

FWS lists lesser prairie chicken as threatened species

03/28/2014 The US Fish and Wildlife Service listed the lesser prairie chicken as a threatened species. While the Mar. 27 final rule fell short of the endanger...

TransAtlantic to acquire concessions in Poland

03/28/2014 TransAtlantic Worldwide Ltd., a wholly owned subsidiary of TransAtlantic Petroleum Ltd., has signed a nonbinding term sheet with San Leon Energy PL...

MARKET WATCH: Crude oil futures sustain $100/bbl price level

03/28/2014 Crude oil futures prices on the New York Mercantile Exchange sustained levels above $100/bbl during trading on Mar. 27 after breaching that thresho...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected