Directive (EU) 2023/959

What it is

The Committee on the Environment, Public Health and Food Safety adopted the report by Peter LIESE (EPP, DE) on the proposal for a directive of the European Parliament and of the Council amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union, Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and Regulation (EU) 2015/757. The proposal aims to revise the EU greenhouse gas emission allowance trading system (EU ETS) , in line with the Union's more ambitious targets of reducing net emissions by at least 55% by 2030 compared to 1990 levels. The committee responsible recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the proposal as follows: Accelerating the decarbonisation of industry through the ETS The European Parliament adopted by 413 votes to 167, with 57 abstentions, a legislative resolution on the proposal for a directive of the European Parliament and of the Council amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union, Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and Regulation (EU) 2015/757. The European Parliament's position adopted at first reading under the ordinary legislative procedure amends the Commission's proposal as follows: The reform increases the ambition of the EU ETS, as greenhouse gas (GHG) emissions in the sectors covered by the EU ETS must be reduced by 62% by 2030 compared to 2005 levels. The EU-wide quantity of allowances should be reduced by 90 million allowances in 2024 and by 27 million allowances in 2026. In 2024, the EU-wide quantity of allowances will be increased by 78.4 million allowances for maritime transport. The linear factor will be 4 .3% from 2024 to 2027 and 4.4% from 2028 . Maritime shipping emissions should be included within the scope of the EU ETS. The regulation foresees a gradual introduction of obligations for shipping companies to surrender allowances: 40% for verified emissions from 2024, 70% for 2025 and 100% for 2026. Most large vessels will be included in the scope of the EU ETS from the start. Some Member States with more than 15 shipping companies per million inhabitants will also receive 3.5% of the ceiling of the auctioned allowances to be distributed among them. No later than 31 December 2026, the Commission should present a report to the European Parliament and to the Council in which it should examine the feasibility and economic, environmental and social impacts of the inclusion in this Directive of emissions from ships, including offshore ships, below 5 000 gross tonnage but not below 400 gross tonnage, building in particular, on the analysis accompanying the review of Regulation (EU) 2015/757 due by 31 December 2024. A separate new ETS II for fuel for road transport and buildings that will put a price on emissions from these sectors will be established by 2027 . Fuel for other sectors…

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In scope for these industries