The European Parliament’s Environmental Committee (ENVI) will vote on the revision of the EU Emissions Trading System (EU ETS) on 16-17 May. E3G and 27 other think tanks, industry associations and NGOs have signed a joint open letter calling for members of the committee to make the EU’s carbon market an effective tool to drive industrial transformation.
- Strengthen the overall ambition of the EU Emissions Trading System beyond the Commission proposal
- Phase-out of the free allocation of ETS allowances as soon as possible, making it the exception rather than the norm
- Reinvesting additional auctioned ETS allowances to support the green transition and address investment gaps
- Not give free allocation to sectors covered by CBAM nor introduce a Carbon Leakage Protection Reserve
- Strengthen and revise earlier the EU ETS benchmarks
- Creation of a comprehensive and holistic policy framework