The EU's CO2 Emissions Trading System (ETS) needs a major tightening. At an average EUR 5.17 per ton, this year's quota price has been almost six times lower than the ambitions voiced when the ETS was implemented in 2005. But this time, the call for tighter CO2 caps has been echoed by the entire electricity sector in Europe – even in Poland and other coal powerhouses.
Europe's industry association for electricity companies, Eurelectric, has called on EU legislators for change. From 2019, the cap will be reduced annually by 2.4 percent, while 24 percent of the surplus quotas until at least 2023 will be transferred from the market to the Market Stability Reserve (MSR), where the amount of surplus quotas will be kept low by decreasing the limit to 300-600 million tons of CO2.
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Ahead of Thursday’s long awaited meeting between EU’s energy ministers, the EU Commission still has yet to rubber-stamp any proposed solutions to the energy crisis. According to a commissioner, preparations are still underway for the meeting – and gas prices are in focus, according to documents leaked Wednesday.