The European Union Affairs Committee of the Riigikogu (Parliament of Estonia) decided at its today’s sitting that Estonia’s positions in the negotiations on revisions of the EU Emissions Trading System must take into account Estonia’s specific circumstances and therefore added security considerations, the impact of the oil shale industry on security of supply and its socio-economic impact to Estonia’s positions.
According to Chairman of the European Union Affairs Committee Peeter Tali, the European Commission has proposed to amend the emissions trading system after 2030, and one of the most important parts of the package of changes is adjusting the emissions reduction trajectory. “Emissions reduction requirements must be based on how quickly the technologies that enable emissions reductions actually become available and economically viable. The European Union Affairs Committee pointed out that when setting the pace for the transition to a zero-emission industry, we must inevitably take into account Estonia’s particular circumstances – namely, security considerations, ensuring security of supply, and the socio-economic impact,” Tali explained. “I refuse to believe that the oil shale chemistry has no future in Estonia; we simply need to use our natural resources sensibly and in an environmentally sustainable manner.”
Under the current directive, the introduction of new units onto the market would essentially reach zero around 2039, according to the proposal, this trajectory would be extended to approximately 2047–2048.
It is noted in the position that for Estonia, the main issues are ensuring that free units continue for as long as possible, and the conditions associated with them. For example, in the oil shale industry, the next step in reducing emissions is carbon capture technology. This technology is not yet economically viable or ready for market. Therefore, such industries need an exemption so that they can continue to receive free units in the future. Furthermore, companies that have already invested in reducing emissions must not be placed at a disadvantage and should also receive free units after 2030.
According to the explanatory memorandum, the goal is to reach an agreement on a general approach among Member States this December.
Minister of Energy and the Environment Erkki Keldo presented the Government’s positions on the European Commission’s proposal to enhance the competitiveness of the EU Emissions Trading System and simplify monitoring, reporting, and verification procedures. The European Union Affairs Committee approved the positions in an amended form, taking into account the opinions of the Economic Affairs Committee and the Environment Committee.