The MSR Vote in ENVI
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The MSR vote in ENVI Sandbag’s voting recommendations 24 February 2015 This afternoon, the ENVI committee votes on its response to the Commission About Sandbag proposal to fix the EU carbon market through the introduction of a Market Sandbag is a UK-based not-for-profit think tank Stability Reserve (MSR). Below we conducting research and campaigning for provide an annotated copy of the final environmentally effective climate policies. voting order with Sandbag’s voting Our research focus includes reform of the EU recommendations presented in place of Emissions Trading Scheme, the EU 2020 and 2030 the rapporteur’s. climate & energy packages, Carbon Capture Storage & Utilisation, and the persistence of old Our analysis finds that the Commission coal in Europe. The International Centre for Climate Governance ranks us in the top twenty proposal needs to be improved global climate think tanks. substantially if it is to help the carbon market deliver on the cost-effective For more information phone (+44) 02071 486377, emissions reductions it once promised. visit our website at www.sandbag.org.uk, or email us at [email protected] We argue that the Commission proposal needs to start much earlier than 2021, preferably by July 2016. The backloaded allowances must be prevented from returning to market, an issue that equally applies to the unused allowances, an issue that Sandbag first highlighted. Both must not flood the market at the end of Phase 3 if the oversupply is not to worsen before the MSR takes effect. We have also argued that, either now, or in its first review, the thresholds and adjustments in the Commission proposal will need to be made tighter and more aggressive. Finally, we have argued that billions of allowances will need to be cancelled from the scheme both to get Europe back on the cost-effective path to 2050, and to ramp up global ambition ahead of this year’s climate conference in Paris. These views are reflected in the voting recommendations below (as ++), however, we also recognise that there are slightly less ambitious amendments which still represent significant progress on the Commission proposal and should be supported as satisfactory compromises or acceptable fallbacks, and these have also receive our qualified endorsement (+). We have stayed silent on the issues over which we do not feel strongly and have only rejected proposals that we feel represent inadequate progress or even regress from the Commission’s original proposal (-). We hope you will take this opportunity to vote for a Market Stability Reserve that can act as a genuine fix to the carbon market’s problems, establishing a carbon price signal that is meaningful without being punitive, while reducing the danger of ad hoc political interventions or policy fragmentation across Europe. Item 11 ANNEX 24 February 2015, 15h00 Sandbag’s annotated VOTING LIST on the proposal for a decision of the European Parliament and of the Council concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and amending Directive 2003/87/EC PR – PE541.353v02-00 + AM– PE544.331v02-00 Rapporteur: Ivo Belet Concerned Am No Tabled by Remarks Sandbag Contents text Draft AM 12 Jadwiga Rejection of MSR proposal legislative Wiśniewska resolution Rejection of Commission Paragraph 1 AM 16 João Ferreira, proposal - if Luke Ming adopted, all - Flanagan, AMs fall Teresa Rodriguez- Rubio, Pablo Echenique ARTICLES Start date - market stability reserve Article 1 – COMP 1A GUE/NGL; If adopted, Jan 2017 start May 2016 publish paragraph 1 Greens/EFA the ; EFDD following AMs fall: 85-97, corres.parts: ++ 7, 115-132, AMs 160- 169; AMs 221-227; 228, 2, 19-34 COMP 1B EPP; S&D; If adopted, 2018 start (by Dec) ALDE the following + AMs fall: 85-97, corres.parts: 2/50 Concerned Am No Tabled by Remarks Sandbag Contents text 7, 115-132, AMs 160- 169; AMs 221-227; 228, 2, 19-34 Falls if COMP 1A adopted Article 1 – AM 85 Bas Eickhout Identical Start on July 1, 2016 paragraph 1 Falls if ++ AM 90 Seb Dance, COMP 1 Paul Brannen adopted Start on January 1, AM 86 Ian Duncan 2017. Identical AM 87 Merja Kyllönen, Falls if Josu Juaristi COMP 1 or Abaunz, AMs 85/90 Stefan Eck, adopted ++ Katerina Konecná Start on January 1, AM 88 Jan Huitema 2017. AM 92 Gerben-Jan Gerbrandy, Fredrick Federley, Catherine Bearder AM 94 Peter Liese, Sirpa Pietikäinen, Dubravka Šuica, Karl- Heinz Florenz, Bendt Bendtsen, Alojz Peterle AM 95 Giovanni La Via AM 96 Massimo Paolucci, Renata Briano, 3/50 Concerned Am No Tabled by Remarks Sandbag Contents text Simona Bonafè, Caterina Chinnici, Enrico Gasbarra, Paolo De Castro, Nicola Caputo AM 97 Matthias Groote, Claudiu Ciprian Tanasescu, Theresa Griffin, Jytte Guteland, Guillaume Balas, Nessa Childers, Miriam Dalli, Jo Leinen, Pavel Poc, Giorgos Grammatikak is AM 89 Jadwiga Falls if Start on January 1, 2023. Wiśniewska COMP 1, AMs 85/90 - or 86/87/88/92/ 94/95/96/97 adopted AM 91 Andrzej Falls if Start on January 1, 2022 if October Grzyb, Jerzy COMP 1, Council conclusions Buzek, AMs 85/90, - implemented. Elżbieta 86/87/88/92/ Katarzyna 94/95/96/97 Łukacijewsk or 89 a adopted AM 93 Markus Falls if Start on January 1, 2021, and let the Pieper COMP 1, - backload come to AMs 85/90, market. 86/87/88/92/ 94/95/96/97, 89 or 91 4/50 Concerned Am No Tabled by Remarks Sandbag Contents text adopted Backloaded allowances Article 1 – COMP 4A GUE/NGL; If adopted, CXL the backload paragraph 1 a Greens/EFA the (new) ; EFDD following amendments ++ fall: 99, 176- 178, 101/6/98/100 102; 184/185/9 and 3, 36, 38, 39, 47, 48, 49, 55, 56, 75 and AM 167 corresp. part; 99, 133, 188 and 150 COMP 4B EPP; S&D; If adopted, Backload into MSR ECR; ALDE the ++ following amendments fall: 99, 176- 178, 101/6/98/100 102; 184/185/9 and 3, 36, 38, 39, 47, 48, 49, 55, 56, 75 and AM 167 corresp. part; 99, 133, 188 and 150 Falls if COMP 4A adopted 5/50 Concerned Am No Tabled by Remarks Sandbag Contents text Article 2 – AM 176 Matthias Cancel the backload paragraph 1 – Groote, point 3 a Claudiu Identical ++ (new) Ciprian Article 10 – Tanasescu, Falls if paragraph 1 b Theresa COMP 4 (new) Griffin, Jytte adopted Guteland, Seb Dance, Guillaume Balas, Nicola Caputo, Nessa Childers, Jo Leinen, Giorgos Grammatikak is AM 178 Seb Dance, Paul Brannen AM 177 Giovanni La Falls if Cancel half the backload Via COMP 4 or ++ AMs 176/178 adopted Article 1 – AM 101 Massimo Place the backload into the MSR paragraph 1 a Paolucci, Almost (new) Renata identical Briano, ++ Simona Falls if Bonafè, COMP 4 or Caterina AMs Chinnici, 176/178 or Enrico 177 adopted Gasbarra, Article 2 – Paolo De AM 167 Part paragraph 1 – Castro "In 2019 and point 3 f AM 98 Ian Duncan 2020....in the (new) reserve" Article 10 – AM 100 Gerben-Jan corresponds paragraph 4 – Gerbrandy, subparagraph Fredrick 1 Federley, Catherine Bearder AM 184 Josu Juaristi Abaunz, 6/50 Concerned Am No Tabled by Remarks Sandbag Contents text Stefan Eck, Katerina Konecná, Merja AMs Kyllönen 184/185: AM 185 Ian Duncan corresponding amendment to Directive 2003/87/EC Place the backload AM 9 Rapporteur Vote together into the MSR (but - one concept start in 2021). AM 6 Rapporteur + Falls if COMP 4, AMs 176/178, 177 or 101/98/100/ 184/185 adopted AM 102 Mark Falls if Place the backload into the MSR (but Demesmaeker COMP 4, - start in 2021 and use AM 176/178, it for carbon leakage). 177 or 101/98/100 /184/185/9 or 9/6 adopted AM 99 Andrzej Falls if Never cancel MSR:ed EUAs. Grzyb, Jerzy COMP 4 - Buzek, adopted Elzbieta Katarzyna Lukacijewska Publication Article 1 – AM 110 Andrzej Falls if Publish volume of allowances in paragraph 2 Grzyb, Jerzy COMP 1, - circulation in May Buzek, AMs 85/90, 2020. Elzbieta 86/87/88/92/9 Katarzyna 4/95/96/97 Lukacijewska (pp.1-3) adopted AM 108 Jadwiga Falls if Publish volume of 7/50 Concerned Am No Tabled by Remarks Sandbag Contents text Wiśniewska COMP 1 allowances in circulation in May AMs 85/90, - 2019. 86/87/88/92/9 4/95/96/97 (pp.1-3) adopted Falls if AM 110 adopted AM 104 Bas Eickhout Publish volume of allowances in ++ circulation in May AM 105 Merja 2016. Kyllönen, Josu Juaristi Abaunz, Identical Stefan Eck, Katerina Falls if AM Konecná 110 or 108 AM 106 Massimo adopted Paolucci, Renata Briano, Simona Bonafè, Caterina Chinnici, Enrico Gasbarra, Paolo De Castro AM 107 Ian Duncan AM 109 Seb Dance, Paul Brannen AM 111 Eleonora Evi, Marco Affronte, Piernicola Pedicini, Dario Tamburrano, David Borrelli AM 112 Giovanni La Via AM 113 Matthias Publish volume of allowances in Groote, circulation in May Claudiu 2016. 8/50 Concerned Am No Tabled by Remarks Sandbag Contents text Ciprian Tanasescu, Theresa Griffin, Jytte Guteland, Seb Dance, Nessa Childers, Miriam Dalli, Pavel Poc, Jo Leinen, Giorgos Grammatikak is Article 1 – AM 114 Andrzej MSR cannot touch EUAs for electricity paragraph 2 a Grzyb, Jerzy - modernisation. (new) Buzek, Elzbieta Katarzyna Lukacijewska Article 1 – COMP 2 EPP; S&D; If adopted, x-1, without undue delay paragraph 3 ECR; ALDE the following + amendments fall: 7, 115- 132 and AMs 135- 143 and correspondi ng parts of 2, 19-34 Thresholds: "upper" Article 1 – AM 130 Eleonora Evi, Falls if 2016 Jul start, 25% adjustment, paragraph 3 Marco COMP 2 1 year response, Affronte, adopted ++ 600 Mt upper Piernicola threshold, 1 billion Pedicini, Part "July MSR haircut Dario 2016" Tamburrano, corresponds David to AMs 85/90 Borrelli AM 116 Bas Eickhout Part "July start 2016 July, 1 year lag, 25% of 2016" tot into reserve, 9/50 Concerned Am No Tabled by Remarks Sandbag Contents text corresponds