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09 Apr 2020, 13:43
Julian Wettengel

Greens call for clarity on ETS allowance cancellations during German coal exit

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The Greens group in the German parliament (Bundestag) has called on the government to clarify how it aims to decide the amount of EU Emissions Trading System (EU ETS) allowances it plans to take off the market during the coal exit. 鈥淗ow much CO鈧 is saved in the end depends on this. The federal government must provide clarity in good time,鈥 said climate spokesperson Lisa Badum . In a reply to a parliamentary inquiry by the Greens seen by the 麻豆无码版, the economy ministry said it was 鈥渘ot possible to quantify in advance the amount of allowances that will become available every year as a result of the coal phase-out.鈥 It also said the government鈥檚 decision whether and what quantity of allowances is to be deleted depends on two independent reports published annually. It is 鈥渘ot trivial鈥 to determine how many of the freed-up allowances would already be cancelled through the EU-wide Market Stability Reserve (MSR) and the two-report approach is 鈥渞obust,鈥 said state secretary in the environment ministry Jochen Flasbarth . In its reply, the economy ministry said the government will decide whether to publish reports 鈥渋n due course.鈥

As Germany phases out coal, the demand for emission allowances in the EU ETS will fall. To avoid that emissions reduced under the German coal exit move elsewhere in Europe due to freed-up allowances, the government plans to cancel an amount corresponding to the additional emissions reductions caused by the shutdown of coal power capacities 鈥渋nsofar as it is not withdrawn from the market through the MSR.鈥

The economy ministry also said it was in close contact with the European Commission about plans to reform the EU ETS. While it was not clear yet whether a debate would start during Germany鈥檚 EU Council presidency in the second half of 2020, the ministry says that once the Commission comes out with a proposal 鈥 envisioned for 2021 鈥 鈥渢he federal government will advocate for the introduction of a moderate floor price.鈥 Without providing details on the price level, the ministry says it should 鈥渃reate planning security for climate investments in the ETS 蝉别肠迟辞谤蝉.鈥

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