The Confederation of British Industry today calls for a single binding carbon target and reform for the EU Emissions Trading System (ETS) – on the eve of the Council of EU Ministers summit in Brussels tomorrow.
Katja Hall, CBI Deputy Director-General, said: “As European leaders meet in Brussels, there will be some major economic and geopolitical issues on the agenda.
“It is vital that they make bold decisions on the future of the EU’s energy package for 2030 to give business the clarity it needs to make long-term investment decisions.
“A single binding target of a 40% reduction in greenhouse gas emissions, with member states reaching this in the most appropriate way to suit their national circumstances, would be the best outcome. This should pave the way for comprehensive, long-lasting reform of the EU’s Emissions Trading System.
“Competitiveness must also be at the heart of discussions, with greater support for energy-intensive industries ensuring that they can play their part in the transition to a low-carbon future.
Meanwhile the UK government is also calling for rapid reform of the emissions trading system. Ed Davey, Energy and Climate Change Secretary, said: “Europe has the opportunity to show the world how we can cut emissions while creating investment, jobs and growth – but only if we reform the system, and reform it fast.
“Otherwise we’re facing increasing costs for businesses, uncertainty for investment and ultimately higher costs for consumers, which isn’t acceptable.”
The UK government is calling for the Market Stability Reserve to be brought forward to 2017 to reform the ETS as soon as possible so that it helps drive low carbon investment and back-loaded allowances to be kept out of the market, either through cancelling them or placing them directly into the reserve.