While some criticise the Emissions Trading System (see EUROPE 13883/6), others are in support of it. “A robust and predictable EU Emissions Trading System (EU ETS or ‘ETS’) must remain the bedrock of Europe’s clean industrial future”, 46 investors said in a letter sent to the European Commission and the Council of the EU on Wednesday 10 June.
The signatories notably recalled that the green transition was “already happening” and that it “will be one of the defining investment trends over the next decade and beyond”. They insisted on the risks, but also on the “opportunities for investors” of the transition to a decarbonised economy.
“The ETS is the world’s most successful carbon market”, they said, arguing that although energy-intensive sectors do face challenges in decarbonising, the solution is not to weaken the ETS. “Instead, it requires a robust ETS accompanied by complementary measures that support cost-effective and commercially viable decarbonisation”, they maintained.
“Investors and businesses use the carbon price to inform key decisions”, the signatories said. “The upcoming ETS review must not undermine this long-term signal, erode confidence or penalise innovators already investing in the transition”.
The proposal to revise the ETS is currently scheduled for 15 July.
Read the letter: https://aeur.eu/f/mae (Original version in French by Nadège Delépine)