The MEP in charge of reforming the EU Emission Trading Scheme (ETS) has finally revealed his thinking. MEP Ian Duncan’s proposals open the door to more ambitious emissions cuts in the wake of the Paris climate deal and beef up a new Innovation Fund. But his most significant suggestion is a “tiered” approach to carbon leakage, which would give some industries more free allowances than others. So what does it all mean for the carbon price?
The man in charge of leading the EU’s carbon market reform through the European Parliament has one mission: to get the job done. “Right now the ETS is like a car without an engine,” said rapporteur MEP Ian Duncan, the Scottish Conservative in charge of the file, this week as he finally unveiled his much-anticipated proposals to improve the EU’s Emissions Trading Scheme (ETS) from 2020 onwards.
To read more about Duncan’s reform proposals in Energy Post Weekly, click here for a free trial. The article by our Brussels correspondent Sonja van Renssen discusses responses from NGO’s, policymakers, business and analysts. It also reveals what the effects of this reform plan would be on the carbon price.