EU lawmakers reject carbon market reforms in divisive climate vote (updated)

Seafarms

08/06/2022 13:41

* EU lawmakers reject entire proposal to upgrade carbon
market
    * Parliament to vote on seven other climate policies
    * Split over whether to boost or weaken measures
    * War, inflation loom over climate vote outcomes

 (Updates with carbon market vote result)
    By Kate Abnett
    BRUSSELS, June 8 (Reuters) - The European Parliament on
Wednesday rejected a proposal to reform the European Union's
carbon market and will send it back to a parliamentary committee
to be redrafted, in a rare move that exposed divisions on the
bloc's biggest climate change policy and could delay the
measure. 
    The vote thwarted an attempt to confirm the EU assembly's
position for negotiations on the final carbon market law, as
lawmakers splintered over whether to strengthen or weaken the
EU's emissions trading system (ETS).
    The ETS is the EU's main policy for cutting greenhouse gas
emissions, which it does by forcing power plants and industry to
buy CO2 permits when they pollute. The upgrade of the scheme -
along with a raft of other new climate policies - aims to put
the EU, the world's third biggest polluter, on track for its
target of reducing net planet-warming emissions by 55% by 2030,
from 1990 levels.
    Green and Socialist lawmakers rejected the carbon market
proposal after initial votes indicated parliament would weaken
its ambition compared with an earlier position. Lawmakers from
right wing groups including the European Conservatives and
Reformists also opposed it, despite having agreed to support
some compromises ahead of the vote.
    Peter Liese, parliament's lead negotiator on the carbon
market reform, urged his colleagues to try again in the
committee to find a proposal that would win support.
    "All those that voted against today can think twice...
please don't kill the ETS," he said.
    The rare outright rejection could set back the timeframe for
finishing the law - which the EU is racing to do this year, as
it attempts to cut emissions faster by the end of the decade.   
    The parliament votes on seven other climate change policies
on Wednesday, with the outcome of those also uncertain as
concerns about soaring energy costs and inflation collide with
Europe's commitments to fight global warming.
    Lawmakers are split on whether to uphold or weaken the
plans, and will consider hundreds of amendments.
    Brussels is touting the policies as a way to swap reliance
on Russian fossil fuels for locally-produced green energy,
eventually lowering energy prices and avoiding the spiralling
costs that failing to tackle global warming would incur.
    But some lawmakers cite the immediate pressures of energy
costs, the economic consequences of the Ukraine war, and the
need to give industries more time to adapt as reasons for a
slower approach. 
    A key vote will be on plans to impose a 100% cut in CO2
emissions from new cars by 2035 - effectively banning new
combustion engine car sales in the EU. Some lawmakers want to
weaken that to a 90% CO2 cut. The EU's world-first plan to place
a CO2 levy on imports of carbon-intensive goods such as steel
and cement is also up for vote.
    Emails seen by Reuters show some industry lobbies have urged
lawmakers to delay or weaken the measures.  urn:newsml:reuters.com:*:nL4N2XP2S0 

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Ukraine war, pandemic set to speed Europe's green energy
transition, report finds      urn:newsml:reuters.com:*:nL4N2XN363
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 (Reporting by Kate Abnett
Editing by Barbara Lewis and Mark Potter)
 ((Kate.Abnett@thomsonreuters.com;))