Merkel: EU Must Reform ETS Scheme Now

German Chancellor Angela Merkel said on Thursday that Europe must agree quickly on a reform of the Emissions Trading Scheme (ETS) and as part of that, surplus CO2 certificates must be reduced.

"The German government will push for a clear signal for a quick and sustainable reform of the Emission Trading Scheme. It is and remains the central instrument to fight climate change in Europe," Merkel told the Bundestag lower house of parliament in a speech.

"We must reduce as quickly as possible existing surpluses of certificates to bring emissions trading back on course," she said, adding Europe had to send a strong signal to the international community for a deal on climate change.

Reporting by Madeline Chambers and Stephen Brown