BDEW: EU Parliament Vote on Backloading:
Müller: Important Signal for EU Climate Policy
Further steps towards fundamental reform of emissions trading must follow
“We welcome the fact that the members of the European Parliament have voted in favour of the proposed compromise on backloading. This has now paved the way for a comprehensive reform of emissions trading”, explained Hildegard Müller, Chairwoman of the General Executive Management Board of the German Association of Energy and Water Industries (Bundesverband der Energie- und Wasserwirtschaft - BDEW) after today’s vote in the European Parliament in Strasbourg. The decision on the delayed auctioning of emissions certificates, so-called backloading, is an important signal for the future of the joint European Union climate policy.
“Backloading must be, as a one-off measure, the first step towards a fundamental reform of emissions trading. Further steps must then promptly follow. This reform absolutely must be accompanied by a commitment to an ambitious, EU-wide emissions reduction target for 2030”, underlined Hildegard Müller. She added that the time period from now until 2020 is too short for many investment decisions of energy companies to achieve their respective targets. In contrast, the time period from now to 2050, which the EU climate roadmap covers, is too long for investment decisions. Müller continued, “Interim targets for 2030 which apply across Europe could release the investment necessary to achieve the climate protection aims. Furthermore, a common EU position on 2030 targets forms a good base for international climate protection negotiations”.
A one-off intervention in the emissions trading system has generally become necessary as emissions trading is not currently providing the necessary investment incentives for future oriented technology and processes. Low CO2 prices do not direct investment towards low CO2 and highly efficient technology. “In light of this, today’s decision was important for energy companies as a political signal in favour of a stable price level oriented towards long-term emissions targets”, stated Müller.