Rail sector keeps confidence in Emissions Trading System’s potential for clean and fair mobility

Rail sector keeps confidence in Emissions Trading System’s potential for clean and fair mobility

Wednesday, 8 June 2022

On 8 June, the European Parliament, meeting in Strasbourg, rejected the report on the Emissions Trading System (ETS) by 365 votes against, 265 votes in favour and 34 abstentions. The Parliament has referred the report, along with interlinked reports on the Carbon Border Adjustment Mechanism and the Social Climate Fund, back to the Environment Committee. The Community of European Railway and Infrastructure Companies (CER) trusts that the Parliament and the Rapporteur Peter Liese, will reach agreement and approve a position supporting the gradual extension of the ETS to emissions from all transport modes, with a shift to 100% allowance auctioning across all sectors.

This will not only help to level the playing field across all modes of transport but offer a unique opportunity to reduce the European Union’s reliance on imported fossil fuels thanks to a wider uptake of energy-efficient mobility options and a quicker deployment of renewables in transport.

CER encourages the Parliament to capitalise on the ETS revenues, which will generate substantial revenues for national governments. The current ENVI report requires Member States to use at least 10% of the revenues generated from the auctioning of allowances for the development of public transport, in particular climate-friendly passenger and freight rail transport. ETS revenues and the Social Climate Fund are tools to provide support for the most vulnerable households by providing clean and fair mobility options. The proposals on revenues are particularly timely since the EU is discussing the investment needs of the TEN-T network. ETS revenues would provide EU and national budgets with annual amounts to co-finance rail infrastructure and fleet investments to put in place the rail services required by the EU Sustainable and Smart Mobility Strategy.

CER Executive Director Alberto Mazzola said: “It is essential that revenues from ETS be fully utilised to boost climate mitigation and a just transition. We thank Rapporteur Liese for his efforts and hope that the European Parliament will approve a position supporting the extension of ETS to other transport sectors and use of the revenues to provide social support. This will close the transportation emissions gap while protecting the most vulnerable from transport poverty”.