IETA reaction to European Council decision on EU 2040 climate target

IETA welcomes the Council agreement on the EU’s 2040 climate framework. We are pleased that Member States recognised the important role of international credits in supporting domestic decarbonisation efforts by agreeing to increase their share, introducing a pilot phase starting in 2031, and allowing Member States additional flexibility to use credits at the national level. The previous unnecessary limitation on the use of credits in the EU ETS has been removed, which is a very welcome step.

However, the decision to postpone ETS2 undermines market certainty and creates unnecessary disruption. We urge the European Parliament to uphold the planned start date of January 2027. Rather than delaying the system, efforts should focus on enhancing predictability and ensuring the swift implementation of the proposed ETS2 changes, providing businesses with the stability they need to plan and invest.