STOCKHOLM — The European Parliament on Wednesday backed a rescue plan for the world's biggest cap-and-trade system for emissions of carbon dioxide, the most prevalent greenhouse gas from human activities.
In a 344-311 vote, European lawmakers in Strasbourg, France, approved a proposal to delay an auction of allowances in the EU's emissions trading scheme.
The delay is designed to boost the carbon price, which has dropped below 5 euros ($6.5) per ton due to an oversupply of allowances and Europe's economic slowdown.
Introduced in 2005 as a tool against climate change, the system allows power plants and big factories to trade CO2 permits, providing an incentive to cut emissions.
The plan is an amended version of a proposal rejected by the European Parliament in April. It must also be approved by EU governments.
"We must have a well-functioning European carbon market to boost innovative low-carbon technologies in Europe," Climate Commissioner Connie Hedegaard said in a statement, welcoming the parliament's vote.
France's governing Socialist Party hailed the decision as a "second chance for the carbon market" and a victory against lobbies.
The cap-and-trade system is a cornerstone of the EU's climate policy so its executive Commission is eager to make it work. But some energy-intensive industry groups had lobbied against delaying, or "backloading," allowances, saying such measures would create market uncertainty.
