- Germany welcomes the Commission proposal to reform the EU emissions trading scheme in a quick and sustainable way by establishing a market stability reserve.
- We believe it is necessary to launch the mechanism significantly before 2020, i.e. already in 2017.
- The backloading volume should be directly transferred to the market stability reserve while taking the risk of carbon leakage into account.
- Germany believes that trigger level based on Article 29a for the return of allowances from the reserve to the market should be appropriately lowered.
- Germany supports the Commission proposal to retain the current criteria for the review of the carbon leakage list for 2015-2019.
- We are also in favour of carbon leakage regulation in the context of a comprehensive agreement on key parameters of an ambitious 2030 package that would prevent companies from relocating for climate policy reasons.
As for the details of the Commission proposal to establish a market stability reserve, Germany thinks that clarification is needed above all on the following points:
- the mechanism's proposed threshold values;
- the proposed amount that can be returned to the market annually (here there are differences in comparison with the amounts to be withdrawn);
- the effects of the proposal on price expectations, affected industries etc.
Germany will review the explanations distributed by the Commission on 6 June 2014 with respect to the points mentioned above. We welcome the Commission's announcement that it will hold an expert workshop on the economic effects of the measures.
Germany expressly reserves the right to submit further comments in the course of negotiations.