OREANDA-NEWS. The European Parliament's industry and energy (ITRE) committee will have no exclusive decision-making powers in a review of the EU emissions trading scheme (EU ETS) directive, the conference of presidents decided today.

The ITRE and environment (ENVI) committees will have shared competence over the modernisation fund, among other components of the law, parliament's governing body determined. Under shared competence, to all intents and purposes ENVI will remain the lead committee, while ITRE will offer an opinion.

A dispute between the two committees over which one should act as lead committee over certain aspects of the bill has stalled discussions over post-2020 EU ETS reform since the end of last year. The EU ETS reform law will govern the cap and the number of free allowances handed out in phase four (2021-30) of the scheme.

ENVI rejected ITRE's demand to have final determination over the modernisation fund, as well as a greater say over free allowances for power sector modernisation in eastern Europe and the carbon leakage list, which governs the amount of free allowances handed out to industry.

The European Commission has proposed creating three funds in phase four — a modernisation fund of 310mn allowances, an industrial innovation fund of 450mn allowances and a new entrants' fund of400mn allowances.

A public hearing on the EU ETS reform proposal is to take place in ENVI on 18-19 February, based on a revised timetable released by the rapporteur's office. ITRE will hold an exchange of views on the proposal on 7 April, according to its preliminary schedule.

UK Conservative member of the European Parliament (MEP) Ian Duncan, who is responsible for steering the legislation through parliament, will present his draft report on 20 May.

ITRE is scheduled to adopt an opinion on the draft report on 23 May and table any amendments by a 31 May deadline. ENVI will consider the draft proposal on 15-16 June and table any amendments by 21 June.

ITRE's final vote on the proposal is scheduled for 13 October, followed by ENVI's final vote on 8 December. The proposal will then be subject to a final vote in parliament's plenary in February 2017.