Stavros Dimas on tackling climate change

EU Environment Commissioner admits ETS needs improvement

EU News Site EurActiv.com published a plain talking interview last month with the Greek Stavros Dimas, the EU Commissioner for Environment. One of the most striking points of this interview is that Dimas openly talks about the failure of the first phase of the Emission Trading Scheme (ETS). 'Some energy producing companies had windfall profits,' he frankly admits. He sees the over-allocation of allowances and the lack of allowance auctioning as the main reasons why ETS did not create genuine incentives for emission reduction investments. The second phase of ETS, according to Dimas, aims at correcting these teething troubles and creating the required CO₂ certificate scarcity to make the system work.

Another remarkable statement from Dimas was that, if we are not successful in fighting climate change with our present tactics, then an individual carbon card might be an option. This idea is currently already being discussed in the UK. 'The personal carbon card concept would also take care of some social issues,' says Dimas. 'Pensioners, for example, who do not drive a car, will have an advantage because they will be able to sell their own allowances and gain an additional income, and those who are richer and drive bigger cars will pay extra, so yes, it is socially correct.'