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Editor: David Keighley
11th July 2013

The European Parliament's decision to support the 'backloading' of CO2 Emissions Permits in an attempt to encourage the move from fossil fuels towards renewables has drawn a mixed response from industry. The decision, by 344 votes to 311, holds around 900 million carbon allowances off the market - and has brought an immediate rise in the carbon credit price.

Criticism of the decision came from major energy user UK Steel, where Director Ian Rodgers described the move as "only a short-term sticking plaster. If anything it will be counter-productive, because interfering with the market sends the wrong signals. It is now clear that the EU Emissions Trading System (ETS) in the long term needs fundamental review. It is not working on several levels, including for energy intensive industries."

However, at the European Wind Energy Association, senior regulatory affairs advisor Remi Gruet said that EU vote "will give a small boost to the carbon price, but most importantly it will build confidence in the ETS. It is crucial that the EU Member States now agree backloading as soon as possible. Then the EC should propose a 2030 climate and energy package with headline renewable and greenhouse gas reduction targets."

For ETS information visit


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David Keighley

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