The European Commission will launch work on post-2020 rules for the EU ETS in June, the executive’s climate and energy chief Miguel Arias Canete said Wednesday.

Speaking in Brussels at the launch of the Commission’s vision for a Paris 2015 global climate deal, he said he expected work on designing the next ETS trading phase to begin after the MSR had been fully agreed.

“We expect the Latvian presidency to resolve this dossier then we will start the ETS regulation (on 2030) in the month of June,” he said.

European leaders agreed last October to cut the bloc’s domestic emissions 40 percent under 1990 levels by 2030.

This loose policy framework must be filled in by the European Commission in a legislative process expected to take at least two years and requiring agreement by national governments and the EU Parliament.

It requires:

• EU ETS emissions to be cut by 43% under 2005 levels by 2030
• An increase in the amount by which the scheme’s cap reduces to 2.2% starting in 2021, up from 1.74% currently
• Maintaining free allocation for industries, should other nations set comparable CO2 curbs

More open is the potential for use of more international credits, but EU leaders said this should only be possible if the overall EU emissions reduction goal is deepened beyond 40%.

TRANSPORT

Arias Canete said that on June 20 the Commission would hold a conference to help decide how to extend the bloc’s policies on road transport emissions.

“The objective is to kick off discussions to deliver further CO2 standards for vehicles in a new road transport package.”
Carmaker lobbyists have been suggesting that lawmakers could consider including road transport in the EU ETS, following California’s lead.

But environmentalists say this could undermine more effective policies currently in place.

By Ben Garside – ben@carbon-pulse.com