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Italian minister calls for suspension of EU carbon pricing scheme
Italian Minister for Enterprises Adolfo Urso called for the suspension of the European Union’s carbon pricing scheme, the EU Emissions Trading System (ETS), as the bloc looks for ways to boost its ailing industries.
“The ETS mechanism, as it stands today, is nothing more than a tax, a duty on energy-intensive companies that are no longer able to compete,” Urso said in Brussels as he arrived on Thursday to a meeting of EU ministers in charge of competitiveness.
Under the ETS, businesses in sectors such as electricity generation, industrial manufacturing and aviation must buy allowances for their greenhouse gas emissions. The system currently covers around 40% of total EU emissions.
As Europe’s industry struggles with comparatively high energy prices, some EU countries are arguing that the high energy prices together with the costs of emissions certificates are a substantial burden for industrial sectors.
Urso said that the ETS is forcing the relocation of energy-intense manufacturing outside of Europe and encouraging financial speculation.
“We must all be aware that it needs to be substantially revised,” he said.
The ETS, which was first introduced over 20 years ago, however has been credited with being one of the main drivers for innovation as it pushes business to apply solutions that reduce emissions.
German Economy Minister Katherina Reiche backed the ETS but said that “the European emissions trading system needs to be further developed.”
The German government was in favour of a swift reform, she said.
The European Commission is currently working on a long-planned assessment of the ETS with finding expected in the coming months.
ANEWS
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