The European Parliament and the Council (Environment Ministers) agreed on 28 February its negotiating position for the revision of the Emission Trading System (EU ETS), says Cembureau.

According to the proposed directive, now due for deliberation in a trilogue of meetings. The cap on emissions will fall by 2.2 per cent a year – the so-called linear reduction factor – until at least 2024. This is expected to push up the cost of allowances and provide an incentive for industries to adopt cleaner technologies.

The average of the 10 per cent highest-performing factories set the benchmark level at which allowances are given for free and there is agreement in principle that these benchmarks are to be set on the basis of real data even if details still need to be discussed. A fund of up to EUR12bn (GBP10.2bn) will be established to help industry innovate and invest in technology.