Brussels, 26 November 2020 | Europex welcomes the Commission’s initiative to review the EU Emissions Trading System (EU ETS) to align it with the increased decarbonisation climate targets for 2030 and net zero by 2050. The emissions and energy markets will be key in delivering on Europe’s climate ambitions and scaling up innovative low-carbon technologies as well as renewable energy sources for electricity (RES). As Europe’s most successful policy to combat climate change, the EU ETS is the right tool to incentivise emissions reductions where they are most efficient and to promote investments in clean technologies, providing consistent carbon pricing across sectors. Expanding the scope to include further sectors and ensuring commitment to strong market principles is needed to ensure that the EU ETS continues driving Europe’s decarbonisation efforts in the coming decades. To this end, measures which have the effect of distorting price signals such as non-market-based or largely differing support schemes must be avoided.
In the attached document we provide comments on the key objectives identified by the Commission for its analysis in the Inception Impact Assessment (IIA). We look forward to continuing our engagement in additional detail in our response to the formal public consultation.