Ahead of the publication of the EC Proposal for the EU Emission Trading Scheme reform, expected on 14 July, we would like to present a few considerations.

We support the objectives of the European Green Deal and the EU’s ambition to accelerate significantly the transition towards the 2050 climate neutrality objective to ensure timely action by 2030, provide a balanced reduction pathway and redistribute in time efforts across the EU society.

In this context, it is important to refine the current analysis on technology readiness and to understand the length of investment cycles in each sector of the economy, through a dedicated bottom-up assessment.

To achieve the emission reduction goals and to protect the competitiveness of energy intensive industries, we have the following recommendations for the next ETS revision:

1. Strengthened carbon leakage protection for EIIs and their value chains
2. Cost-efficient achievement of the ETS target without rebasing and MSR strengthening
3. Contribution of EU ETS and non-ETS sectors (i.e. burden-sharing)
4. Avoiding extension of the ETS scope to non-ETS sectors with higher abatement costs and no international competition
5. The allocation of ETS revenues to support industrial decarbonisation

Please consult the link below for further details:

Energy Intensive Industries’ recommendations to the EU Emission Trading Scheme reform