Phase IV proposal to come before year end – commission

The European Commission will propose post-2020 carbon-trading rules before the end of the year, a spokeswoman said on Friday.

The commission is currently consulting on rules that will govern phase IV of the EU emissions trading system (ETS), the period that runs from 2021-2028 (see EDCM 22 December 2014). The consultation ends on 16 March.

Before the commission starts designing the next phase of the system, it prefers to have finalised the ongoing structural reform of the legislation governing the current trading phase, the spokeswoman said.

This reform aims to make supply of emissions allowances more flexible by launching a market stability reserve, removing and releasing allowances depending on surplus levels.

But the spokeswoman said the phase IV design proposal would be unveiled before the end of the year regardless of whether the market stability reserve has been finalised by then.

She added that further details will be disclosed on 25 February, when the commission is expected to announce the framework for the energy union and adopt a communication outlining expectations ahead of the December global climate negotiations in Paris. Ben Lee and Silvia Molteni