In light of the EU European Trading System reform, the European Association for Coal and Lignite, EURACOAL, welcomes the Commission proposal of July 2015.
EURACOAL firmly believes in a market-based approach to reduce greenhouse gas emissions, such as the EU ETS. The single European cap ensures that climate policy targets are achieved. The price follows from the target and reflects the cost of CO2 reduction. If the price of allowances is low, then this means that the CO2 reduction target has been achieved at a low cost – a good outcome. Calls for a particular “carbon price” would undermine the ETS as a market-driven trading system.
EURACOAL presents in its position paper several points where we consider that improvements could be made, namely the Modernisation and Innovation Funds, the Market Stability Reserve, international credits, the free allocations for projects in eligible Member States and for district heating / CHP, the distribution between auctioning and free allowances, allowance fungibility and the New Entrants Reserve.