IETA statement on EU ETS

The EU Emissions Trading System is the cornerstone of Europe’s climate policy. It has delivered tangible emission reductions in a cost-effective manner while strengthening Europe’s energy security and global climate leadership. By putting a price on carbon, the EU ETS drives innovation, accelerates industrial transformation, and mobilises significant revenues for Member States to reinvest in the green transition.

"The EU's carbon market must be safeguarded and reinforced,” Dirk Forrister, IETA President and CEO, said on Thursday. "Pragmatic improvements,  including enhanced flexibilities and the integration of high-integrity international carbon credits, can strengthen the system while preserving its environmental integrity.”

"Above all, stability and predictability are indispensable. Long-term investment decisions depend on a credible and resilient regulatory framework,” he added. “The events of the last two days have amply demonstrated that confidence requires political as well as regulatory stability; prices have fallen by nearly 12% as traders price in what they see as an increased risk of political intervention in the market.

“The EU ETS must remain protected from ad hoc political interventions that risk undermining investor confidence and weakening Europe’s decarbonisation pathway."