Parliament Mandates Government to Suspend EU ETS

Unanimously, the parliamentary Energy Commission adopted a draft decision to mandate the Council of Ministers to state Bulgaria's position within the meeting of the European Council on March 19-20 this year regarding the need for a temporary suspension of the application of the European Union Emissions Trading System (EU ETS) until the completion of its current review at the European Union level and the development of a derogation mechanism. 

The draft decision was developed by a working group, which prepared it after the MPs decided to postpone the adoption of the draft decision of “Vazrazhdane” at an extraordinary meeting of the commission this morning.

The chairwoman of the Energy Commission, Pavela Mitova from ITN, pointed out that the MPs from “Vazrazhdane”, GERB, DPS, ITN, “Velichie” and MECH had united around the draft decision. This is a draft decision that unites a constitutional majority, which has not happened so often in this National Assembly so far, she noted.  

Zhecho Stankov from GERB thanked the MPs who stood behind the draft decision for managing to integrate in a few pages the preservation of jobs in the Maritsa basin and the interest of the industry, which is included in the emissions trading. We achieved an optimal text, he said. 

According to Iskra Mihaylova from “Vazrazhdane”, the working group managed to achieve a consensus and a good text with regard to coal energy. According to her, such a consensus should be reported by the caretaker prime minister. She believes that this position will resonate in the coming months or even years. Currently, over 10 countries have taken a position regarding the termination or the creation of capacity regarding carbon emissions, and this position of the National Assembly should be taken into account. We will expect a report from the meeting in question 7 days after it has taken place, she emphasized.  

The draft decision states that the National Assembly mandates the Council of Ministers to state Bulgaria's position within the meeting of the European Council on March 19-20 regarding the need for a temporary suspension of the application of the European Union Emissions Trading System (EU ETS) until the review at the European Union level and the development of a derogation mechanism, including through the release of the Market Stability Reserve, as well as to take urgent measures to limit the price volatility of carbon quotas and their impact on electricity prices.

The draft decision also states that the National Assembly mandates the Council of Ministers to insist at European level on the adoption of coordinated measures aimed at reducing the pressure on coal energy, business and industry, including through operational independence of the member states in the application of the European Union Emissions Trading System in emergency situations endangering energy security, the introduction of mechanisms to limit extreme price levels of carbon quotas, including through the release of the Market Stability Reserve, a price corridor or stabilizing instruments, limiting the direct transfer of the price of carbon emissions to the price of energy in order to protect industry and end consumers, a flexible approach to the application of the European Union Emissions Trading System in conditions of crisis, including possibilities for the temporary adaptation of the obligations to purchase quotas for individual sectors. 

With the draft decision, the parliament tasks the caretaker government to submit a report to the National Assembly within 7 days from the completion of the meeting of the European Council.