This animation video produced by the European Parliament explains how the EU’s Emissions Trading System works with the aim to discourage industries from emitting CO2 by making it cheaper to go green. However, due to the financial crisis, some modification have been made.
In February, MEPs vote on plans to reform the EU’s emissions trading system (ETS) as it is not working according to the initial expectations. Although the EU is the world’s third largest CO2 emitter, it also harbours the most ambitious climate target: to cut emissions by at least 40% by 2030 compared to 1990 levels. The plans voted on in Parliament should help achieve this target while maintaining Europe’s industrial competitiveness.
Specifically, MEPs vote on proposals aimed at reducing oversupply and boosting prices, including a proposal to reduce the supply of permits at a faster rate, as well as putting a certain amount of them in reserve.
The changes will form the basis of further negotiations with the governments of member states on the final text of the directive. UK ECR member Ian Duncan, who wrote the report with recommendations to fellow MEPs, will lead the negotiations on behalf of Parliament.
European Parliament issued the following infographic, on top 20 CO2 emitters in the world and on carbon emission per European state: