EU Parliament votes for 60% carbon emissions cut by 2030
The European Parliament voted on Tuesday (6 October) to update the EU’s climate target for 2030, backing a 60% reduction in greenhouse gas emissions by the end of the decade, up from 40% currently.
Lawmakers in the EU assembly voted the proposed amendment on the 2030 target by 352 votes to 326, with 18 abstentions, according to estimates.
The text will now be forwarded to the EU Council of Ministers representing the EU’s 27 member states for final approval. The EU’s objective is to wrap up negotiations by the end of the year.
The Parliament’s decision on the 2030 climate target took place on Tuesday evening as part of a wider vote on a proposed European Climate Law, which seeks to enshrine into hard legislation the EU’s goal of reaching climate neutrality by 2050.
Although initially the European Commission’s proposal was to increase the emission reduction target by 55% for 2030, it is among the few votes that do not take into account the Commission’s proposal.
We will continue to see a controversial end to the year in terms of the EU’s future climate commitments, which should be taken by unanimous vote by all Member States. The European legislative process will certainly attract even greater volatility of the prices of CO2 certificates, which have been currently high volatile in the last weeks.
Next quarters in EUA – Eventful and Volatile
EUA price reached a 14-year high of €30,47/t on 14 September and twice exceeded €30/t during the third quarter, averaging at €27,41/t due to strong support from EU climate policies and bullish equities markets. The EUA market has persistently shrug off the weak fundamentals coming from the COVID-19 pandemic and plunging coal generation due to fuel switching, as market participants have kept their eyes on the Climate Law and 2030 emissions reduction target, but also on international politics, such as the elections in the US. The EUA certificate is currently traded today, 7 October 2020, at €27.43/t on the ICE ECX exchange from London.
Source: Euractiv, Brussels and Aither Group, Switzerland