On May 10 2022, WISE Netherlands and Carbon Market Watch, as part of the LIFE ETX consortium, organized the second edition of the Carbon Pricing Hub in Brussels. The event title was “EU ETS REVIEW: A make-or-break decision for the climate”. This edition of the Carbon Pricing Hub allowed panelists and participants to discuss the revision of the EU Emission Trading System in light of upcoming key decisive moments in the European Parliament.
On May 16 and in June 2022, votes in the European Parliament will determine the future of the EU Emission Trading System. With these make-or-break-decision points on the horizon, Members of the European Parliament as well as researchers and NGO representatives shared insights and debated how the EU ETS can be improved during the event.
Altogether, the second Carbon Pricing Hub provided an opportunity at this crucial point in the timeline of the ETS revision to discuss the proposal itself as well as the amendments proposed by the European Parliament and stress the importance of high climate ambition. It brought together stakeholders from a variety of sectors, including government, academia, industry, journalism, NGO’s and civil society.
Dr. Felix Matthes (Öko Institute) started the event with his presentation of the study “The Revision of the European Union Emissions Trading Directive: Assessing Cap and Market Stability Reserve Reform Options", commissioned within the LIFE ETX project. This study proposes pathways to make the ETS more ambitious in the upcoming revision in order to meet the EU’s and international climate targets, and provided a strong research-based underpinning for the panel discussion that followed.
The panel featured MEP Jytte Guteland, MEP Michael Bloss, Wendel Trio (Climate Change Policy and Science Analyst), and Sabine Frank (Director Carbon Market Watch). We had a lively debate about the role of shadow rapporteurs, the current state of affairs regarding the negotiations and what more needs to be done. We discussed where the European Parliament can really strengthen the ambition on the EU ETS proposal and whether the revision as it currently stands strengthens the 'polluter pays' principle enough.