EU Moves Forward On ETS II
Yesterday the European Union took a major decision on the future of its Emissions Trading System (ETS). The big issue has been the question of whether companies would have to pay for their permit allocations in future, or whether they would continue to have them handed out for free. Karsten Neuhoff made a strong case for auctions, and it seems that the EU agreed with him, because broadly speaking that is what they opted for.
Reactions have been mixed. The Times thinks this is a disaster for the UK energy industry and suggests that electricity costs will rise steeply. Sandbag is broadly optimistic. And Deutsche Welle is furious that we have to wait until 2013 for the auctions to take place.
Of course it could all be moot, as the decision has to be ratified by both the European Parliament and member states. Doubtless much lobby will take place between now and then.