What goes on in Poland on the 22nd of June.
Central Europe opposes using EU ETS in a recovery plan
European Union countries have not agreed on a new EU budget and a new package stimulating the European economy after the coronavirus. The discussion concerned the sources of financing the mechanism worth EUR 750 billion. One of them was providing the reconstruction fund with funds from the sale of CO2 emission allowances. However, the countries of Central and Eastern Europe opposed this proposal.
The European Commission must determine how the debt will be repaid if the recovery plan is approved. The institution wanted to propose the acquisition of new EU funds, including the use of the Emissions Trading System (ETS) to obtain EUR 10 billion. This proposal was met with opposition from Eastern European countries that want to maintain revenues from the sale of carbon dioxide emission allowances. – Poland, the Czech Republic, Lithuania, Estonia and Bulgaria oppose this idea – said EU diplomatic sources cited by Reuters. – Increasing revenues from the ETS is unacceptable to us, it would cost us too much – said one of the diplomats of the countries mentioned above. Proceeds from the sale of carbon dioxide emission permits – with a total value of EUR 14.6 billion in 2019 – are currently being allocated to national budgets.
The Commission has proposed that from 2021 countries should maintain the same income from the ETS as in recent years, and that additional revenues from extending the emissions trading system to other sectors should be allocated to the EU plan. Another diplomat from this part of Europe told Reuters that it would be a disproportionate burden on the poorer members of the bloc.