At the informal meeting of Environment and Climate ministers in Horsens, Commissioner Hedegaard participated in the lunch discussion on the future of the EU Emissions Trading System.
Commissioner Hedegaard made the following statement on the state of the European carbon market:
"We are now rapidly approaching the start of the third phase of the European carbon market. Major changes will apply as of next year to the regulatory underpinning of the EU ETS. 2012 marks the final preparations for the transition to the new rules. Our regulatory work over several years has aimed for a smooth transition into phase 3. Difficult and unexpected macroeconomic circumstances arising from the economic and debt crisis complicate this aim, as they have substantially altered the supply-demand balance in the European carbon market for the early years of phase 3. I have therefore asked my services in DG Climate Action to bring forward the first annual report on the ETS. This report is envisaged by the ETS Directive in 2013, the first year of phase 3, but I have asked for it to be prepared already now. This offers an opportunity to include a review of the auction time profile. Based on this annual report, I will consider bringing forward a proposal to the Climate Change Committee for decision this year."