Deal on extending EU ETS 'Stop the Clock' until 2016 inches closer but red lines drawn on revenue earmarking
The first trilogue negotiations this week involving representatives from the European Commission, the European Parliament (EP) and EU member states, represented by the European Council, to hammer out a way forward for the Aviation EU ETS has resulted in a closing of gaps on some issues but divisions on others. The ‘Stop the Clock’ (STC) derogation applying to intercontinental flights was for 2012 only and if the EU institutions fail to find an agreement the carbon scheme will automatically ‘snap back’ to the original full scope of the EU directive, with the prospect of renewed international fall-out. Whereas EU states are supporting a modified STC scope, the Parliament’s environment committee, which leads on the directive, supports a Commission proposal to regulate all flights taking place in EEA airspace. It now appears EP negotiators are willing to accept STC until 2016 but in exchange demand states earmark ETS auction revenues for climate purposes and a tightening of the emissions cap.
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