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Nordic Council: EU rejection for emissions trading proposal is a disaster for the climate.

The EU Parliament has rejected a plan aimed at saving the European system for trading with emissions trading system. The Nordic Council believes this is a threat for climate co-operation, and will push for a united Nordic front in the matter.

Apr 19, 2013

The EU Parliament has rejected a plan from Climate Commissioner, Connie Hedegaard, aimed at saving the European system for trading with emissions trading system. The Nordic Council believes this is a disaster for the climate.

Photographer: Magnus Frödereberg(norden.org

All the Nordic governments support Commissioner for Climate Action Connie Hedegaard's proposal for a new plan for the EU emissions trading system. There was also broad support for the proposal amongst members of the EU Parliament from Denmark, Sweden and Finland. However, it was 10 votes short for it to be adopted by the EU Parliament.

"The Emissions Trading System has been a cornerstone in climate policy, an important tool for ensuring that businesses introduces cost effective solutions to reduce emissions of climate gases. The EU Parliament's decision puts the entire system at great risk of collapsing. Does it make good sense that the energy-heavy industries have a strong influence in the political decision-making process?", says Ann-Kristine Johansson, Chair of the Nordic Council Environmental Committee.

The Nordic Region at the forefront

The Nordic Council has continuously supported initiatives to reduce emissions of climate gases and the Nordic countries have been at the forefront in calling for a rapid approach to climate policy.

"The imminent environmental and climate threat is a global challenge which can only be solved with broad international co-operation. Up until now European co-operation has been a model for what can be achieved through co-operation. This is therefore not just a setback for European climate policy. I also fear the knock-on effect in other countries and regions. I will raise the issue in the Nordic Council and in the dialogue I have with colleagues in other European countries. We must try to get out of the impasse that the decision in the EU Parliament has led to", says Johansson.

European Emissions Trading System and proposal for a new plan

The objective of the EU Emissions Trading System was to ensure a price on CO2 slippage as an incentive to increase energy efficiency and innovation - it should pay to develop climate-friendly solutions. Unfortunately, too many allowances were issued in relation to the demand, and so the price per allowance has been too low to have an effect.

A proposal from Climate Commissioner, Connie Hedegaard, aimed to fix the problem. The proposal was adopted in the Council of the European Union, but must also be adopted in the EU Parliament to take effect. With the current low price on CO2 emissions, the almost 12,000 European companies in the system today gain no economic benefit for producing the lowest amount of CO2 emissions.