According to a draft text seen by
Europolitics
, the quantity of allowances (or emission permits) issued yearly for the entire EU is expected to decline by a linear factor of 2.2% (instead of 1.74% under rules currently in force). In the framework of the reformed ETS, the member states could reserve for auctions and financing of the modernisation fund 57% of allowances not allocated for free.
In addition, 90% (compared with 88% at present) of total allowances to be…
Commission and member states slammed
Implementation of the EU's ETS and the framework in place to protect the market's integrity have to be improved, says a 2 July report by the EU Court of Auditors. It notes that the Commission and member states have not properly managed all the different aspects of the ETS, a key component of the Union's climate and energy policy. The Union's auditors note that there have been steady improvements made, on the Commission's initiative, to protect the scheme's integrity as a market-based mechanism but that there are still problems to be addressed to further improve its integrity. Implementation of the ETS was also affected by significant weaknesses during the second phase (2008-2012). The Court of Auditors makes a number of recommendations to improve market regulation and oversight in order to boost investors' confidence and to ensure use of the ETS as an environmental policy tool.
