EU lawmakers to vote on reform of 'polluter pays'

May 07, 2013
Tractors block a street during a demonstration to denounce new governmental regulations on nitrate, in the center of La Roche-sur-Yon, France, on January 16, 2013. EU lawmakers will vote again on controversial plans to make polluters pay more for the greenhouse gas emissions blamed for global warming, after narrowly rejecting the proposal last month, a top MEP said on Tuesday.

EU lawmakers will vote again on controversial plans to make polluters pay more for the greenhouse gas emissions blamed for global warming, after narrowly rejecting the proposal last month, a top MEP said on Tuesday.

The European Parliament's Environment Committee will issue a new report on June 19 on the plan to freeze pollution credits covering 900 million tonnes of , committee head Matthias Groote said on his Twitter account.

The "report will then be submitted to a vote in (parliament's) July plenary session," Groote added.

The European Commission, the EU's executive arm, wants the freeze so as to force up the price of the pollution credits companies are required to buy to cover their CO2 .

Prices are currently so low that companies are happy to pollute and pay for the credits rather than invest in the cleaner technology the Commission wants them to introduce as part of efforts to curb pollution.

The Commission says that if prices can be increased, companies will then see it is cheaper in the long-run to upgrade their technology.

Last month, the voted 334 against the planned freeze, with 315 for and 63 abstentions, sparking another plunge in pollution credit prices and calling into question the future of the EU's System (ETS).

Many MEPs condemned as a matter of principle what they said were Commission efforts to intervene in the market while the higher prices would only hurt industry at a time when the struggling economy needs all the help it can get.

Environment ministers of nine EU member states—among them Britain, France and Germany—meanwhile reiterated their support for the freeze in a letter Tuesday.

The freeze "constitutes a short-term solution pending a reform of the ETS," German Environment Minister Peter Altmaier said in the letter.

Analysts said that the credits freeze, covering the period 2013-15, is at best a stop-gap solution.

"The market has crashed, with the price plunging to less than three euros per tonne," one analyst said.

Even if the freeze is approved in July, it will at best push the price up to six or seven euros, well short of the 30 euros required to get the ETS working properly.

"That will allow the patient to be stabilised, then cared for," the analyst added.

The ETS was set up with the aim of cutting by some 20 percent between 2005 and 2020.

Explore further: Mexico investigates mass fish death in lagoon

add to favorites email to friend print save as pdf

Related Stories

Euro MPs back plans to freeze pollution credits

Feb 19, 2013

The European Parliament's environment committee on Tuesday backed efforts to make investment in clean technology financially more attractive by freezing about 900 million tonnes of pollution credits available ...

EU states urge lawmakers to back pollution credit plans

Apr 12, 2013

Six EU states, including powerhouse Germany, called on European lawmakers Friday to back efforts to revive a faltering market in pollution credits so as to bolster the bloc's fight against global warming.

Brussels bids to rescue carbon-trading scheme

Jul 25, 2012

The European Commission made a bid Wednesday to fix the EU's sickly Emissions Trading Scheme, calling for a delay in the auction timetable over 2013 to 2020 in order to prop up prices.

Recommended for you

The underestimated risk of ethanol fireplaces

9 hours ago

Ethanol fireplaces are becoming more and more popular. However, they are not only highly combustible – in the past, severe accents have occurred repeatedly with decorative fireplaces. The devices also pollute ...

New research shows temperatures vary block by block

10 hours ago

This summer has seen the temperature rise above the severe heat mark of 90 degrees just five times, with the latest happening Wednesday afternoon. That's far fewer times than in an average New York summer.

User comments : 2

Adjust slider to filter visible comments by rank

Display comments: newest first

vlaaing peerd
4 / 5 (1) May 08, 2013
Altough I am fully for lettting the polluter pay, this only works if it is implemented world wide, right now the only effect it will have is that if the taxes are too high, the companies will just move out of Europe.
antialias_physorg
not rated yet May 08, 2013
It doesn't really matter whether it's "polluter pays" or "taxpayer pays" - because if it's "polluter pays" then they will just up the price of thir goods so it'll be you and me inthe end who pays, regardless

(This only works as long as an industry will stick together - and not one black sheep starts using methods which pollute less. Though such methods are usually more costly so the ability to sell their proucts cheaper is not really given automatically)

The only way to really get it going is to give (time limited) subsidies for companies that change over to better environmental practices. Because once they change over they cannot change back for fear of bad press.