Narrowing down on ambition: Liese’s compromise LRF-value

Parliament rapporteur Peter Liese (EPP) has put forward a compromise proposal on the linear reduction factor to the Environment committee negotiating team, following a meeting of the European Parliament’s environment committee shadow rapporteurs reported by Contexte. The proposal sets a new cap trajectory for the Emissions Trading System (ETS), with a different rate and a different timing for the mid-phase change of pace compared with the Commission proposal and Liese’s draft report.

The analysis sets out the cap trajectory and carbon budget under the compromise proposal against the Liese draft report and the Commission proposal, with and without the fallback option, how international credits continue to inform the trajectory, and how the proposal positions Liese relative to the S&D, Renew, and Greens groups he is targeting for a broad Parliament compromise.