According to the idea of the European Commission, the financial proceeds from the EU ETS emissions trading system are to become the new own income of the European Union. Poland opposes this, according to information provided by an EU source to the Polish Press Agency.
The EC submitted this proposal as part of the draft revision of the EU budget for 2021-2027. New own resources are needed for the EU to fill the gap in EU finances related to, inter alia, with the creation of the Recovery Fund, for which the EC borrows money on the markets. The new own resources would be used to repay the loans taken.
The issue of revenues from the ETS is to be discussed at the EU summit next week in Brussels. The EU Emissions Trading System (EU ETS) was established in 2005 to promote the reduction of greenhouse gas emissions. It limits the amount of greenhouse gases that can be emitted by energy-intensive industries, energy producers and airlines. The EU sets an overall ceiling for emission allowances, and companies receive or buy these allowances. The ceiling is successively lowered so that the amount of emissions gradually decreases.
The EC proposes three new sources of revenue: one based on revenues from emissions trading (ETS), the other on resources generated by the proposed EU carbon border adjustment mechanism, and another on the part of the residual profits of multinational companies that will be back allocated to EU Member States under the recently concluded OECD/G20 agreement on the reallocation of taxing rights.
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