The EU’s ETS (emissions trading system) will see a sizeable cutback in sectors not included in the cap-and-trade program to help the EU reach it goals.
“The facility was originally created in 2008, when the EU decided to set aside 300 million permits from the reserve for new entrants to the ETS and use proceeds from their sale to encourage renewable energy and carbon-capture technologies. Member states will consider whether to extend the scope of the mechanism to aid low-carbon innovation in industrial sectors, the draft shows” (renewableenergyworld.com).
The European Union’s goal to modernize energy technology systems and reduce carbon emissions is likely to be supported by a reserve created specifically for this purpose. The reserve is set to contain between one and two percent of the ETS’s budget that will be managed by the European Investment Bank.
EU leaders will look into accelerating projects that can be seen as key role player in the renewable industry in an effort to gain momentum for their plans. Holistic government oversight seems to be the reoccurring theme; although it will serve more as incentive and less so as a regulatory interference.
“’A reliable and transparent governance system will be developed to help ensure that the EU meets all of its energy policy goals, with the necessary flexibility for member states and in full respect of their freedom to determine their energy mix,’” (renewableenergyworld.com).