ETS reform proposal to fund the energy transition
The European Parliament has adopted a proposal to reform the EU Emissions Trading System Directive for the post 2020 period.
The reform proposes an Innovation Fund which will finance clean energy and low carbon projects by auctioning ETS allowances.
According to Kasparas Kemeklis, ETIP Ocean project officer, "The vote is a step in the right direction for funding the energy transition".The Parliament proposes to increase allocations to an Innovation Fund from 400 to 600 million allowances. This will allow renewable energy demonstration projects, like ocean energy farms, to get the extra financing needed to get into the water.
Members of the European Parliament will now enter into negotiations with the Maltese Presidency of the Council and the other national governments to reach an agreement on the final shape of the legislation.