A group of ten European Union member states, including Romania, asked the EU Executive to continue granting free pollution certificates to industry, to help reduce costs, in the context in which the war launched by the US and Israel against Iran has led to a vertiginous increase in energy prices, Reuters reports.
European Union leaders, who will meet on Thursday at a summit in Brussels, are debating proposals to modify the pollution certificates market, which have become essential in discussions on limiting the increase in energy prices, according to Agerpres.
Speaking at an energy conference in Gdansk, northern Poland, Prime Minister Donald Tusk said Poland was one of the signatories that sent a letter to European Council President Antonio Costa and European Commission President Ursula von der Leyen on Wednesday to demand that industry continue to receive free emissions allowances, which reduce companies’ carbon bills.
According to Reuters, which has seen a copy of the letter, the signatories also include the leaders of Austria, Bulgaria, Croatia, the Czech Republic, Greece, Hungary, Italy, Romania and Slovakia.
“We believe that a thorough review of the ETS is necessary, aiming to mitigate its impact on electricity prices and reduce the risk of carbon price volatility, including an extension of free EU allowances under ETS 1 after 2034,” the letter said, referring to the emissions trading scheme.
“Furthermore, it is crucial to facilitate the phasing out of free allowances from 2028 onwards, to avoid placing an excessive burden on industry during this transition period,” the document said.
The European Commission confirmed receipt of the letter.
Launched in 2005, the Emissions Trading System (ETS) is designed to meet the EU’s 2030 emissions reduction target. The ETS obliges power plants and industries to buy pollution allowances to cover their CO2 emissions, but manufacturing and energy-intensive industries can get some allowances for free.
Prime Minister Donald Tusk said he would also urge the EU to tailor its approach to climate policy to the individual needs of countries. “This is a change of philosophy, a deep adjustment, so that each member state can count on a specific approach that takes into account its particular characteristics,” Tusk said.
Poland, which still relies on coal for about half of its electricity generation, has been particularly reliant on the allocation of free pollution allowances to contain costs.
Changes to the emissions trading scheme, known as ETS2, will put a price on CO2 emissions from heating and transport fuels from 2028, with the revenue collected being spent on helping households and businesses invest in electric cars and energy-saving renovations.