Dutch Members of the European Parliament react predominantly positively to the compromise reached on Wednesday in Brussels – in the second instance – on new measures against air pollution. The current ETS emissions trading system for ‘free pollution rights’ will be abolished by two-thirds between 2027 and 2035, and companies will gradually start paying taxes on their air pollution.
The European Parliament has thus established its position on the future revision of the EU Emissions Trading System (ETS) with 439 votes in favor, 157 against, and 32 abstentions. Under pressure from the EPP-Christian Democrats, last-minute relaxations were made in favor of industry.
The abolition of free allowances (i.e., the introduction of taxes on air pollution) will only start in 2027, after the 2024 European elections. However, at the request of the Greens and the S&D Social Democrats, this process must be completed within five years instead of seven.
It has also now been included that there will be a link between the introduction of a new customs tax (CBAM) on the import of environmentally unfriendly products and the new European CO2 emissions tax. If the new CBAM cannot prevent the ‘leakage’ to cheap imports, European companies will also not have to pay extra levies.
PvdA MEP Mohammed Chahim was lead negotiator on this dossier. “CBAM is the only instrument we have to encourage our industry worldwide to produce greener. At the same time, we are phasing out free emission allowances. With CBAM, the polluter will really pay and we give a push to the rest of the world to do the same.”
GreenLeft MEP Bas Eickhout supports the new compromise of the three large coalition groups in Strasbourg: “Although we would have liked more ambition, I am relieved that an acceptable agreement has been found. Due to the current economic and geopolitical situation, climate policy is under enormous pressure. We are showing here that despite that pressure we uphold the European climate goals.”
The European Parliament also voted in favor of a ‘social fund’ that financially supports people in making their homes more sustainable (i.e., insulation subsidies). “Those initiating a major transition also have the responsibility to ensure that everyone can keep up. A social climate fund is a good start, but the estimated 72 billion euros is not sufficient to guarantee security for the lowest incomes during a green transition,” said Eickhout.
MEP Peter van Dalen (Christian Union) is relieved that the European Parliament has finally approved the new Emissions Trading System (ETS): “There is no time to lose.” “It is high time that industry becomes more sustainable. Therefore, it is good that the ambition level is raised from 61% to 63% emission reduction.”