The European Commission considers to set aside a number of pollution rights in the EU Emissions Trading Scheme (ETS). Climate Action Commissioner Connie Hedegaard suggests a review of the auction time profile of the ETS. The set-aside should limit the over-supply of the scheme with emissions certificates which leads to falling prices for polluting.
TheCompensators* consider the Commission proposal a first step in the right direction. It is urgently necessary to limit the number of available polluting rights in order to prevent emissions prices to drop further.
However a temporary set-aside in our opinion is not the most adequate solution to the problems inherent to the ETS. Instead, a permanent set-aside is needed to permanently lower the cap for European emissions.
In the meantime, everybody can contribute to lower the real EU cap with TheCompensators*: Compensate* your emissions and reduce the number of emissions allowances available to European industry!