The European Union Affairs Committee: Benchmark values for free allocation of emission allowances should not be reduced too abruptly
At its today’s sitting, the European Union Affairs Committee of the Riigikogu (Parliament of Estonia) approved Estonia’s positions on the initiative to revise benchmark values for free allocation of emission allowances for the current period.
According to Chairman of the European Union Affairs Committee Peeter Tali, it is appropriate to review the free allocation of emission allowances at regular intervals, but such reductions must keep in mind the needs of businesses and avoid overly abrupt changes. “Currently, the European Commission has proposed a reduction in free allowances that is too rapid. Our proposal is to freeze the number of allowances for the coming years or, at least, to reduce them at a slower pace than has been proposed,” Tali said.
Estonia’s positions point out that the current quantities ensure cost predictability and investment security for businesses, which is why changes to the quantity of allowances should be as moderate as possible, and that the European Commission’s proposal reduces the benchmarks for several sectors too rapidly in comparison to improvements in technological and economic capabilities.
Estonia’s positions also note that when revising the Emissions Trading System (ETS) Directive, the methodology for determining allowances should also be thoroughly updated so that it would better take into account the actual capacity of sectors to reduce emissions, and the improvements in technological readiness. The directive itself will not be amended at present; only the implementing act of the directive will be reviewed.
The positions of the Government regarding the Commission Implementing Regulation determining revised benchmark values for free allocation of emission allowances for the period from 2026 to 2030 were presented at the sitting of the European Union Affairs Committee by Head of the Climate Department of the Ministry of Climate Laura Remmelgas.
The European Union Affairs Committee approved the positions of the Government, taking into account the opinion of the Economic Affairs Committee.
Riigikogu Press Service
Merilin Kruuse
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