The EU ETS risks overcompensating industries not needing full carbon leakage protection and the UK will push for a tiered approach to better target those industries that need it most, Britain’s climate and energy minister Amber Rudd said on Thursday.
Speaking at the Green Growth Summit at the European Parliament in Brussels on Thursday and commenting on the European Commission’s ETS Phase 4 reform proposals, Rudd said:
“It could be missed opportunity. It risks leaving the industrial sectors at most risk more exposed while overcompensating others. The UK will push for a tiered approach based on the level of risk.”
Rudd welcomed the EC’s proposal for its:
– Split of 57% auctionable allowances and 43% free allowances
– Opening the Innovation Fund to CCS and industrial sector projects
– “More rational” carbon leakage criteria
She added that the UK government was still considering a more detailed response to the proposal.
By Ben Garside – email@example.com