NGOs, think tanks and industries urge MEPs to vote for a more ambitious and effective Emissions Trading System

Green Tank along with 20 other environmental NGOs, think tanks and industries co-signed a letter to MEPs regarding the crucial vote in the European Parliament’s plenary session on the EU-ETS Directive on 8 June.

The letter focuses on three key issues of the Directive’s revision, asking MEPs to voting in the plenary in favor of the corresponding progressive amendments voted on 17 May 2022 by the relevant Committee of the Environment, Public Health and Food Safety (ENVI). Particularly:

Increase of the climate target for 2030 in the EU ETS sectors to 68%: The urgent need to simultaneously halt the climate crisis as well and the current energy price crisis requires the increase of climate ambition to levels that are compatible with climate science. The increase of the target in the EU ETS sectors from 61% to 68% relative to 2005 emissions voted by ENVI is a step in this direction and must be sealed by the vote in Plenary.

Phase out of free emission allowances given to industry by 2030 at the latest: The system of free emission allowances used so far to protect European industries from the risk of “carbon leakage” has not led to the desired climate result, as greenhouse gas emissions from industries remain at very high levels. Given the operation of the new Carbon Border Adjustment Mechanism (CBAM) to protect industries from carbon leakage and the generous increase in the size of the Climate Investment Fund aiming at rapidly decarbonizing industries, the acceleration of the phase out of free emission allowances becomes necessary for achieving the climate targets, transforming industrial processes towards a sustainable direction and thus enhancing their competitiveness. For this reason, MEPs must vote in favor of the relevant amendment by ENVI.

Stricter benchmarks and conditionalities for granting free emission allowances to industries by 2030: The system for granting free emission allowances to industries for the transitional period until their complete phase out must be fairer and create stronger incentives for industries to invest in projects reducing their carbon footprint. For this reason, the amendment voted in ENVI to comply with stricter energy efficiency standards by industries in order to be granted free emission allowances, must also be voted in the Plenary.

You can read the entire letter here.