A group of ten industry bodies sent a letter to the European Commission on Tuesday 15 February expressing their concerns about the possibility of the Commission intervening in the European Union’s Emissions Trading System (ETS).
“Introducing position limits or restricting the participation of financial and non-financial actors would run the risk of weakening the market”, they say, while asking to wait for the final report of the European Securities and Markets Authority (ESMA) due in April.
The letter comes a day after a meeting between the European Commission’s Executive Vice-President for the European Green Deal, Frans Timmermans, and Polish Climate Minister Anna Moskwa, during which the latter asked the Commission to introduce control mechanisms into the ETS and eliminate financial speculation.
While Warsaw regularly criticises the current functioning of the ETS, deeming it partly responsible for the increase in energy prices, the signatories of the letter defend this carbon market system.
“The ETS is working because the EU has promoted regulatory certainty, which gives everyone greater confidence to participate (in the market) and strengthens market signals”, they write.
However, they are in favour of greater transparency regarding the functioning of the market and its actors.
See the letter: https://aeur.eu/f/cn (Original version in French by Damien Genicot)