The Emission Trading System should help us reach our climate change targets, while also safeguarding the industry's competitiveness, Labour MEP Miriam Dalli said.
During the European Parliament's plenary session debate on the Emissions Trading Scheme(ETS), Dr Dalli stated that the current implementation of the system is not having the desired impact.
The Emissions Trading System is aimed at limiting the emissions that each Member State generates.
Opinions on the effectiveness of the system vary. "On one hand, the ETS resulted in the reduction of Green House Gas Emissions, although part of this reduction may be due to the economic crisis, while on the other hand the ETS has not succeeded in providing a strong price signal to incentivise investments in innovative technology and cleaner energy sources" the Dr Dalli explained.
Miriam Dalli remarked that the problem lies in the issue of surplus allowances of emissions that each member state generates. Dalli called for action on this matter and stated that the EU must address the issue immediately.
This is where the concept of a Market Stability Reserve enters into action, explained the MEP, who is a standing member in the European Parliament's Environment Committee. MSR is a system which regulates unused allowances.
"For the system to be effective, we need to implement the Market Stability Reserve as soon as possible and definitely by not later than 2019", stated Miriam Dalli.
Dalli went on to remark that the Market Stability Reserve can send a strong signal to EU markets and help industries plan ahead while promoting the required investments in innovative and cleaner technologies.
Dalli explained that the success or failure of ETS will directly influence emission levels in Europe and ultimately climate change.
"We need a strong system which helps to effectively reduce emissions in a cost-efficient manner whilst ensuring that industries remain competitive and operating in Europe. As a mother of a young boy, I want my son to grow up in a clean environment while also having the future opportunity for quality employment in Europe. This is the balance that we must reach and this must be the main aim that ETS must strive to achieve" Miriam Dalli concluded.