The European Union’s Emissions Trading System hasn’t been working for quite a while now. Too many allowances were given out for free. The price of carbon has fallen way below the level where it can help drive the transition to low-carbon alternatives.
Take a look at the UK government’s statement on strategy and reform for the EUETS – https://www.gov.uk/eu-emissions-trading-system-the-future-of-the-system
The proposed reform involves setting up a strengthened Market Stability Reserve (MSR). The MSR is supposed to act as a kind of overflow for excess allowances.(1)
I have some issues (2) with the long term viability of the Market Stability Reserve as a solution, but it’s clear that the priority at this point is to get the MSR implemented as early as possible and as strongly as possible.
I wholly support the proposals put forward in Climate Action Network Europe’s position paper. I think building political will behind these proposals is essential to protect them from industry lobbying.
Get Involved –
Write to your MP to ask them if they’re up to speed on this and to let them know you support CAN’s proposals.
(1) Sandbag.org.uk have an interactive model which shows what effect different calibrations of the Market Stability reserve (MSR) should have on the ETS – http://www.sandbag.org.uk/data/msr