EU ETS Review: EC PROPOSAL VS DRAFT ENVI REPORT. 09.02.2022

EU ETS Review: EC PROPOSAL VS DRAFT ENVI REPORT. 09.02.2022

As one of the most important climate policy tools in the European Union (EU), the EU Emission Trading System (ETS) and its revision are crucial to the fit for 55 package published by the European Commission (EC) in July 2021. EC’s proposal touches upon key elements of the EU ETS that were described in a previous paper by ERCST[1].

In January 2022, the ENVI committee in the European Parliament (EP), and more specifically the rapporteur, published its draft report that includes several amendments to the proposal of the Commission. This paper aims to compare the ENVI draft report with the Commission proposal to identify key issues that could take centre stage in the EP discussions involving the following trialogue negotiations.

For each issue identified this paper will include a brief description of the issue, a comparison of the ENVI draft report and Commission proposal, and an analysis of ERCST.

[1] Bloomberg & ERCST (2021): “The Commission Proposal on the ETS Review: A Cool-Headed Assessment”. Available at: https://z7r689.n3cdn1.secureserver.net/wp-content/uploads/2021/09/20210914-Final-Paper-1-2.pdf. Accessed on 28 January 2021.