The MSR has paved the way for the next phase of EU ETS reform but the EU’s climate chief must be swift in proposing post-2020 measures, according to Belgian MEP Ivo Belet on Tuesday, piling pressure on the bloc’s executive to ready its plans before August.

Writing in The Parliament magazine, Belet, the centre-right MEP steering the MSR through the EU Parliament to a full vote due on July 6, said all eyes are now the Commission.

“The parliament counts on European climate action and energy commissioner Miguel Arias Canete to swiftly come up with a legislative proposal on the European carbon market after 2020,” he said.

Arias Canete on Monday insisted the Commission was working hard to publish its post-2020 ETS reform proposal before the August break, despite two earlier warnings that it may only be ready in September.

“The slow-down in industrial activities has led to a massive surplus of CO2 allowances, resulting in very low CO2 prices – between €7 and €8 per tonne of CO2 emissions, whereas the original aim was to price emissions at €30 per tonne,” Belet said.

He said the Parliament fought to ensure strong guarantees to prevent carbon leakage as cutting CO2 was a “daunting task” for energy intensive industries.

By Ben Garside – ben@carbon-pulse.com