Parliamentarians overwhelmingly approve proposal for a market stability reserve to store surplus carbon credits.
The European Parliament has today approved plans to reform the EU's emissions trading scheme (EU ETS) in 2019.
MEPs voted 495 to 198 in favour of a proposal to begin operating a Market Stability Reserve (MSR) to remove some of the surplus carbon credits that have depressed carbon prices to around €7.50 per tonne.
The vote had been largely expected, despite months of discussions, with the proposal now set to be signed off by member states and become law.
The MSR is set to store surplus carbon credits, which have mounted up in the EU ETS due to oversupply and a slowdown in the economy. As many as 1.6 billion could be removed from the system - and could be released again should demand increase.
Liberal Democrat MEP Catherine Bearder said the move would increase the price of carbon and spur green investment.
"This crucial reform will give a boost to green investment and reduce our reliance on imported fossil fuels," she added. "Europe has the world's first and largest carbon market, fixing it gives an important signal as we approach global climate talks in Paris later this year."
SOURCE: business Green, 08/07/2015, http://www.businessgreen.com/bg/news/2416902/eu-carbon-market-reform-bac...