Oxfam welcomes European Parliament vote on EU emissions trading scheme

Oxfam welcomed today’s vote by the European Parliament in favor of emergency measures to save the ailing European Emissions Trading System (ETS) and boost the EU carbon price to help curb CO2 emissions.

In response to today’s vote, Lies Craeynest, Oxfam’s EU climate change expert, said:

“Today’s vote keeps the EU Emissions Trading Scheme afloat for now but the rescue plan will need to be further strengthened if Europe’s flagship climate policy tool is to be fit for purpose. A clear signal was given to EU governments and the European Commission that the time is ripe for deeper reforms. With climate change already undermining food security across the globe we simply cannot afford for the scheme to fail.” 

“Higher auctioning revenues, as a result of ambitious ETS structural reforms, would also raise much needed money for climate action at home as well as to help meet international commitments to deliver climate finance to developing countries, and so increase the chances of a successful international climate deal.” 

A report by Greenpeace and WWF shows that stronger carbon market measures would increase auctioning revenues by €62 - €78 billion over the next seven years. Back-loading alone would increase ETS revenues by 7 per cent or €7 billion between 2013 and 2020, compared to a scenario without intervention. Oxfam calls for 50 per cent of all ETS revenues to be spent on climate action in developing countries.

Notes to Editors

• Developed countries committed in Copenhagen in 2009 to mobilize $100 billion (€73.43 billion based on 2009 prices) per year by 2020 to help poor countries adapt to climate change and develop in a low carbon way. The EU’s fair share is estimated by the EC to be about a third of this figure.

• For background on climate impacts: New World Bank report, Turn Down the Heat: Climate Extremes, Regional Impacts, and the Case for Resilience, which explores the likely impacts of 2 degrees and 4 degrees warming on communities across Sub-Saharan Africa, South Asia and South East Asia.