Wednesday, 3 March 2021
Department of Communications, Climate Action and Environment
72. To ask the Minister for Communications, Climate Action and Environment the estimated amount of revenue expected to be raised through the auction of allowances under the emissions trading system over the next ten years. [11572/21]
Over the last three years (2018-2020), the following revenues have been raised through the auction of allowances under the EU Emissions Trading System (EU ETS): Total Auction Revenues 2018 - €142,069,705Total Auction Revenues 2019 - €124,256,185Total Auction Revenues 2020 - €124,540,385
Due to the proposed changes currently being progressed under the EU Commission's ‘European Green Deal’ package, future revenue from the EU ETS is uncertain. The proposal to increase the EU’s emissions reduction target for 2030 to at least 55% compared with 1990 levels, an increase from the current target to cut emissions by at least 40% below 1990 levels, will require revisions to both EU ETS and non-ETS targets and the respective legislation underpinning these targets. The Commission will present, by June 2021, an overhaul of all relevant climate legislation as part of the “Fit for 55 Package” to align with the newly proposed target.
As part of this revision, the Commission will also consider extending the EU ETS to the maritime transport sector, reducing the EU ETS allowances allocated for free to airlines, and addressing how aviation should contribute to the higher target through the EU ETS. As already announced in the European Green Deal, the further expansion of the system could include emissions from road transport and buildings. Furthermore, the revision includes the first review of the Market Stability Reserve, foreseen within three years of the date of its start of operation on 1 January 2019. All of these matters are likely to impact the future revenues that will be raised through the EU ETS.