EPP proposes faster allowance sale to lower ETS price

Largest group in European Parliament has suggested sale of allowances across one year to finance investments in energy projects

The European Parliament’s largest group, the European People’s Party (EPP), has proposed an amendment to sell a tranche of allowances from the EU’s emissions trading system (ETS) across one year, instead of four as currently planned, to lower the price of allowances and help ease electricity costs. Allowance costs account for about 6pc of the price of power. The proceeds of the sale will be used to finance investments in renewables, energy efficiency and LNG terminals. In its RepowerEU package, set out in March, the European Commission proposed selling €20bn ($20bn) worth of allowances from the ETS to finance its Recovery and Resilience Fund (RRF). The allowances would have been sold across