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The EU ETS Market
The EU environment ministers decided on Friday, 18.09.2015, the final formal adoption of the Market Stability Reserve (MSR) as expected. Six countries – among them Hungary, Poland and Bulgaria – voted against the draft resolution. Thus, the MSR will be introduced on schedule from 2019 and the 900 million allowances from the backloading can flow directly into the MSR.
Also last Friday the EU environment ministers agreed, after long debates, on a common EU position for the UN climate talks in Paris later this year. By the end of this century, a sustainable climate neutrality should be realised worldwide in order to keep the goal of limiting global warming to 2 ° C, according to the proposals of the EU environment ministers.
A reduction target of 50% below the greenhouse gas emissions from 1990 to 2050 is therefore considered to be an important milestone for all countries; all countries should reach their peak emissions by 2020 for the latest and from then on gradually reduce emissions.
As has been feared by the environmental groups and as has been demonstrated here again, the EU environment ministers only managed to agree on the lowest common denominator, which are not expected to lead to ambitious results in Paris. In particular, Greenpeace called for strong efforts in terms of ending the use of fossil energy sources such as coal, gas and oil by the year 2050.
Since many countries around the world have built their economic system on the use of fossil fuels – such as Poland or Australia – and have not yet begun the expansion of renewable energies in sufficient numbers, this will probably remain wishful thinking.
Source: European Commission – DG Clima, Brussels, and Advantag Brokerage Gmbh., Germany