Support the Plenary vote on auctions profile in the Emission Trading System Report on “backloading” from M. Groote.
Dear Member of the European Parliament,
We, leading companies and industry associations active in the renewable energy sector and representing over €1.1 bn EU jobs (1), ask you to support the Environment committee report changing the auction time profile in EU Emission Trading System (ETS) – the so-called “backloading”.
The ETS is failing to provide a price signal for decarbonisation. Today, the vast surplus on the carbon market has pushed the price down to around 4€/t, a level at which it does not price in the cost of emitting CO2 and fails to act as an appropriate investment driver, including for renewable energies. Emission reductions have been driven by the economic downturn and renewable energy (2), not by the EU ETS.
Reaching the Heads-of-States’ objective of 80-95% emission reductions in 2050 requires a zero-carbon power sector by 2050, which in turn, requires full integration of CO2 costs via a transparent, stable and predictable carbon price, alongside renewable energy targets to 2030. Moreover, due to the long lifetime of power plants, 2050 is only one investment cycle away and the transition must begin now if the 80-95% objective is to be met, as early action will give EU industry a competitive edge resulting in jobs and growth.
We therefore urge you to support backloading as a short-term measure to ensure the continuation of the EU ETS market.
(1) REN21: Renewables 2012. Global Status Report. 2012
(2) European Environmental Agency, 2012, Greenhouse Gas Inventory report