MEPs rejected to freeze auctions of a portion of CO2 emission quotas
The European Parliament voted against freezing auctions of a portion of CO2 emission quotas, so as to boost the price of EU polluter's permits. A majority of MEPs felt that interfering with the supply of credits would undermine confidence in the Emissions Trading System (ETS). On the other hand, MEPs agreed to temporarily exclude intercontinental flights from the scheme.
The proposal to freeze credits, dubbed "backloading" so as to boost the price of EU "polluter's permits", was rejected by MEPs in plenary session with 334 MEPs voting in favour of an amendment rejecting the proposal, 315 voting against it and 63 abstaining. According to MEPs, interfering with the supply of credits would undermine confidence in the Emissions Trading System (ETS).
MEPs supporters of the measure argued that an oversupply of credits must be corrected to make the system function as intended. They say a higher carbon price would catalyse the EU's transition to a green economy by stimulating investment and innovation and could also help to connect the EU carbon market with those of other regions.
Besides, MEPs adopted a draft law that includes an agreement with the Council - Permanent Representatives Committee of the Council already endorsed the deal, that temporarily to suspend the ETS for intercontinental flights, so as to facilitate progress towards a global agreement within the International Civil Aviation Organisation (ICAO).