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EU Parliament and Council have reached a provisional agreement to revise the EU Emission Trading System


After two years of negotiations, the European Parliament and Council, following the Commission´s proposal will revise the EU Emissions Trading System (EU ETS) for the period after 2020, as they have communicated today.

This revision will contribute to put the EU on track to achieving a significant part of commitment under the Paris Agreement to reduce greenhouse gas emission at least 40% by 2030. The EU ETS puts a cap on the carbon dioxide emitted by more than 11.000 installations in the power and energy sectors, through a market-based cap and trade system.

Miguel Arias Cañete, Commissioner for Climate Action and Energy said: “By putting in place the necessary legislation to strengthen the EU Emissions Trading System and deliver on our climate objectives, Europe is one again leading the way in the fight against climate change.”

The main improvements agreed by Parliament and Council includes significant changes to the system to speed up emissions reductions and strengthen the Market Stability Reserve to speed up the reduction of the current oversupply of allowances on the carbon market The agreement also includes additional safeguards to provide European industry with extra protection, if needed, against the risk of carbon leakage or several support mechanism to help the industry and the power sector meet the innovation and investment challenges of the transition to a low-carbon economy.


In this sense, energy efficiency and renewables  will be a fundamental part of our action beyond 2020 as energy efficiency can improve Europe’s economic competitiveness and our energy security, as well as reducing emissions. EU is already leading global efforts on sustainable energy. While our substantial domestic commitments see us on track to a 20% share of renewable energy in the EU by 2020, there is still further work to be accomplished in the field of energy efficiency with the time horizon of 2020.



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