EU negotiators need to finalize the reform to the EU Emission Trading System (ETS) at the next trilogue meeting, as negotiations on Thursday failed to reach a final deal, the International Emissions Trading Association (IETA) announced on Friday.
“We urge negotiators to redouble their efforts to reach a deal at the next trilogue meeting, set to be held before this year’s round of UN climate negotiations in a few weeks,” IETA’s CEO and President Dirk Forrister said in a press release.
“An agreement is needed to send a strong signal that the EU is serious about its leadership role in the international climate policy arena and in helping make the Paris Agreement a success,” Forrister said.
The talks between European Parliament representatives, the Council and the European Commission collapsed over a disagreement Thursday on coal safeguards proposed for the Modernization Fund.
The European Parliament called for a 450 grams per kilowatt-hour (g/kWh) emission performance standard for projects to receive modernization funding.
However, the EU Presidency opposed the Parliament’s demand. When the Parliament insisted on its position, the talks ended for the night with plans to resume later.
The fund is designed to support low-carbon transition in poorer EU Member States, according to the press release.
“Business has been calling for clarity and certainty on rules for a long time, especially as the launch of Market Stability Reserve is drawing ever nearer. The reform process must finally bring predictability and boost confidence in the long-term future of the EU’s carbon market,” Julia Michalak, IETA’s director of EU policy said in the press release.
By Muhsin Baris Tiryakioglu