EU Parliament OKs ETS plan

The European Parliament today backed plans to bolster the continent’s troubled Emissions Trading Scheme by holding back 900 million carbon allowances.

The parliament’s approval of amended legislation paves the way for the measure, which it hopes will tackle a glut of carbon credits that has sent their price tumbling to levels that mean their impact on polluters is negligible.

The policy – known as backloading – will now be voted on by Europe’s Council of Ministers at a meeting later this month.

The European Commission will then be given the authority to implement the measure, seen as vital to restoring credibility to the EU’s flagship cap-and-trade system.