Peter Liese: Deal in reach/ both sides move significantly

Final agreement pending legal text and support of a majority and Council / at least one more week of intensive debate

“A final agreement on including maritime in the EU ETS is in reach if all sides show good will.”, comments the EP rapporteur on the file, Peter Liese, after a trilogue on ETS that was focussing on the inclusion of ETS maritime. “The effect of the inclusion of maritime alone would be significantly bigger than other parts of the Fit-for-55 legislation for example CO2 cars.

Moreover, a shift to more clean fuels would not only help the climate but also reduce air pollution especially in cities, at rivers and coastal line.” The biggest breakthrough is according to Liese that the Council agrees on a broader scope of greenhouse gases: “We have asked for this in aviation for 15 years but we never got it. Now a deal is in reach. Greenhouse gases other than CO2 should be included, namely methane and N2O. They should be reported as soon as possible and then included in the ETS. This is of particular importance because alternatives to the bunker fuels, used nowadays by ships are at a large part methane and ammonium which if not managed properly can create greenhouse gas effects.”

However, the devil is in the details and we have some outstanding challenges. In the meeting, both sides indicated significant flexibility on the main points. The Council’s mandate could mean that full coverage of the emissions is only in 2029 depending on the entry into force of the legislation. The parliament insisted on full coverage in 2024. A possible landing zone was explored on phasing in, based on a compromise solution of the Commission. The parliament insists on a targeted use of the revenues. This has been a no-go for Council and Commission in all the discussions ahead not only for maritime but also for other parts of the file. But there is a possible solution inside so that industry will get not only specific call but a dedicated number of allowances should be reserved for innovation in maritime in the innovation fund. On top of that, biodiversity should play a bigger role on the projects in the innovation fund and in national revenues.

“There is no deal yet because it is not clear, if what has been discussed informally between the Commission, the presidency, and the ENVI Chair Pascal Canfin and myself, has a majority in the Council and in the Parliament. But I am sure that with a little bit of good will, the deal will be ready next week and one big part of the ETS is already solved before we enter the final stage. It would be a very important signal after the unsatisfactory outcome of the COP27 in Sharm-el-Sheikh that Europe continues its ambitious climate agenda.”, concludes Liese.