European Union Parliament Passes Move To Reform Carbon Market

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

The European Parliament voted on Wednesday in favor of reforming the European Union’s carbon market post-2021 in an effort to help the EU reach its climate change goals.

Specifically, the Parliament voted in favor of a proposal to reduce the number of “carbon credits,” or emission allowances, by 2.2% each year, as well as doubling the capacity of the 2019 market stability reserve (MSR) to absorb any excess allowances.

According to European Parliament News, Members of the European Parliament (MEPs) “approved the [European Commission’s] proposal to increase the so-called “linear reduction factor” — the yearly reduction of credits in order to deliver on the carbon curbs — by 2.2% from 2021, as against 1.74% in the existing legislation.” The MEPs also voted to ensure that this would be kept under review with the possibility of increasing it to 2.4% by 2024.

As for the 2019 MSR, the plan would see up to 24% of the excess of credits in each auctioning year absorbed by the MSR, and that 800 million allowances should be removed from the MSR starting the beginning of 2021.

“I am very grateful to my colleagues for supporting this report. Today’s vote marks a major step forward towards meeting our ambitious climate change targets” said Ian Duncan, MEP with the European Conservatives and Reformists Group. “Parliament has voted through ambitious measures to fulfil our Paris Agreement obligations, and we have sent a strong signal to the European Council that we are serious about the fight to stop global warming.”

“Today’s landmark vote provides a clear outcome after more than a year of discussions in Parliament, and it demonstrates the European Union’s commitment to turning the Paris Agreement into reality through concrete action on the ground,” said Miguel Arias Cañete, Commissioner for Climate Action and Energy. “Now the EU ETS revision is on the Council’s table and we hope they can swiftly reach an agreement to kick-start negotiations.”

Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.

CleanTechnica Holiday Wish Book

Holiday Wish Book Cover

Click to download.

Our Latest EVObsession Video

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it!! So, we've decided to completely nix paywalls here at CleanTechnica. But...
Like other media companies, we need reader support! If you support us, please chip in a bit monthly to help our team write, edit, and publish 15 cleantech stories a day!
Thank you!

CleanTechnica uses affiliate links. See our policy here.

Joshua S Hill

I'm a Christian, a nerd, a geek, and I believe that we're pretty quickly directing planet-Earth into hell in a handbasket! I also write for Fantasy Book Review (, and can be found writing articles for a variety of other sites. Check me out at for more.

Joshua S Hill has 4403 posts and counting. See all posts by Joshua S Hill