The European Commission has denied rumors about the suspension of the EU Emissions Trading System (EU ETS). The current energy situation in the European Union is far from the deep crisis of 2022, so, according to European commissioners, a pause in the carbon market is inappropriate and even harmful.
This was reported by Argus Media, citing a speech by European Commission Vice-President Teresa Ribera.
In addition, the EU does not intend to change the current mechanism for setting electricity prices or open oil reserves for extraction.
"I don't think that abolishing the carbon price will send a positive signal to anyone. It could derail our decarbonization efforts, leave behind those who acted early, and damage our competitiveness," said Teresa Ribera.
Revision will take place
Under pressure from businesses and some governments, the European Commission still plans to revise the EU ETS this year. However, according to Ribera, the current situation requires special and short-term measures. At the same time, actions that could undermine the green transition in the long term are to be avoided.
Energy сonsistency
Meanwhile, the European Commission defends the principle of marginal pricing in the electricity market.
“We cannot change the fundamental conditions for green industry. We must ensure the security of our investments,” stated Energy Commissioner Dan Jørgensen.
In particular, he insists that, in fact, the number of hours when expensive gas sets the price of energy has dropped significantly compared to 2022. At that time, Russia launched its full-scale war against Ukraine, and the EU’s energy market, dependent on gas imports, was severely affected.
At the same time, opening oil reserves is also not being considered.
“For now, there are no supply security issues in Europe. But in other parts of the world, the situation is different. The IEA Board will soon present a detailed analysis of the advantages and risks of releasing reserves and their amount,” added Jørgensen.
EcoPolitic earlier reported that EU countries support reform and even suspension of the Emissions Trading System.
At the same time, carbon costs have led to excessively high energy prices. This is already resulting in the closure of energy-intensive companies – in the chemical industry alone, over the past two years, more than 100 facilities have ceased operations.
