EU Could Promote Recovery of ETS As Soon As Next Month

Gas-fired power plants could soon become more competitive should the European Union gave the green light to an agreement promoting a recovery of the EU Emissions Trading System (ETS).

On Monday, the Committee of Permanent Representatives gave its consent to the agreement between the Lithuania Council Presidency, the European Parliament and the Commission on Proposal. 

“I expect that the decision we finalize today will produce right price signals for carbon market. The properly functioning EU ETS will promote reduction of greenhouse gas emissions in a cost effective and economically efficient manner. It will also drive the transformation towards the low-carbon economy and investments within the Union,” Minister of Environment of Lithuania Valentinas Mazuronis said in a note released on Wednesday. 

The decision moves the EU closer to the removal of its surplus of carbon emission permits from the market. Beginning in 2013, it could remove up to 900 million allowances from the EU Emission Trading Scheme (ETS). The plan could be finally signed off next month.