Duncan seeks compromise on ETS indirect cost compensation

The European Parliament’s lead MEP on the revision of the EU emissions trading scheme is seeking compromise over a hybrid system to compensate companies for indirect costs

The European Parliament’s lead MEP on the revision of the EU emissions trading scheme (ETS) is seeking compromise over a hybrid system to compensate companies for indirect costs. 

The compromise proposal MEP Ian Duncan (ECR) circulated to other political groups earlier this month would set up an EU compensation fund financed by the sales of 256 million allowances, or 3% of allowances to be auctioned.

This corresponds to roughly 11% of total eligible costs arising when electricity providers pass the carbon costs through in electricity prices. Where this amount fails to cover all eligible costs, member states may top up the funding, he suggested.

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