The European Parliament upheld a recommendation for regulators to tackle oversupply of carbon permits in a non-binding report on the region’s energy policy by 2050.
The Parliament voted to keep the recommendation in the Energy Roadmap 2050 report today at a plenary meeting in Strasbourg, France. The European People’s Party had wanted to remove from the report a call on the European Commission to amend “if appropriate” the carbon-permit auctioning regulation “in order to implement appropriate measures which may include withholding the necessary amount of allowances.”
The Parliament is due to vote next month on a separate draft legislative proposal to enable delaying auctions of some carbon allowances in order to reduce oversupply. Price of CO2 allowances in reaction first increased by +8%, then rocketed up to 20%. Currently it slowly returns to previous levels.