The European Parliament’s Committee on the Environment (ENVI) yesterday voted on a draft report carrying 729 amendments covering issues such as the the linear reduction factor, the auction share, free allocation and carbon leakage provisions, the use of auction revenues, compensation of indirect emissions costs, the Modernisation and Innovation Funds as well as a possible review of the ETS, in view of the stocktaking exercise envisaged in the Paris Agreement.

Local officials are focused on the possible impact of these amendments on a number of issues being pursued by the main power utility PPC, including a quest for free CO2 emission allowances.

Various analyses published until now have present a very mixed picture as to what changes these revisions could bring about.

PPC has elevated its bid for free CO2 emission allowances into a national issue, estimating that the European Commisson’s adoption of the Greek position will lead to savings of over 2.5 billion euros for the period covering 2021 to 2030. The matter directly concerns consumers, PPC has noted, as the cost of CO2 emission allowances is factored into the retail price of electricity.

If yesterday’s decisions by ENVI are also adopted by European Parliament, the cost of CO2 emission allowances is expected to rise sharply from around 5 euros per ton to over 10 euros per ton in 2022 befire reaching 28 euros per ton later that decade, in around 2028 or 2029, industry analysts have forecast.