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IETA calls for certainty and clarity for EU ETS in European Green Deal

12 Dec 2019 9:53 AM | Anonymous member (Administrator)

BRUSSELS, 12 December – The European Commission yesterday published a proposal for a European Green Deal, setting the EU on the course to reach the climate neutrality target by 2050. Such a target brings the EU into line with the goals of the Paris Agreement.

Several initiatives will be unveiled in the course of the next two years to deliver the European Green Deal, and these will have implications for the EU’s carbon market. 

IETA calls on the EU to consult closely with business and industry when considering their likely impact on the operation of the EU ETS.

“We applaud the EU’s desire to bring its climate ambition into line with the goals of the Paris Agreement, but it will need to embrace international markets and natural climate solutions to deliver in a way that protects competitiveness ,” said Dirk Forrister, CEO of IETA.

An increase in the EU’s 2030 climate target will require the reopening of the rules governing the EU ETS. IETA urges that any review of the EU ETS Phase 4 regulations should be done in a way that provides market participants with maximum transparency on the likely impact.

Proposals for changes to the EU ETS that will be presented in 2021 will include the extension of the EU’s carbon market to new sectors, an overhaul of rules protecting energy intensive industries against the risk of carbon leakage, as well as a review of renewable and energy efficiency laws that have an impact on the functioning of the EU ETS.

“IETA believes that the EU’s carbon market should play the key role to deliver on the EU's objective to reach climate neutrality by 2050 in an economically efficient manner,” Forrister said.

“We urge the Commission to carry out its rule making in a transparent manner, so as to offer certainty and clarity to the market.” 

The European Commission today published a proposal for a European Green Deal, setting the EU on the course to reach the climate neutrality target by 2050. Such a target brings the EU into line with the goals of the Paris Agreement.

Several initiatives will be unveiled in the course of the next two years to deliver the European Green Deal, and these will have implications for the EU’s carbon market. 

IETA calls on the EU to consult closely with business and industry when considering their likely impact on the operation of the EU ETS.

“We applaud the EU’s desire to bring its climate ambition into line with the goals of the Paris Agreement, but it will need to embrace international markets and natural climate solutions to deliver in a way that protects competitiveness ,” said Dirk Forrister, CEO of IETA.

An increase in the EU’s 2030 climate target will require the reopening of the rules governing the EU ETS. IETA urges that any review of the EU ETS Phase 4 regulations should be done in a way that provides market participants with maximum transparency on the likely impact.

Proposals for changes to the EU ETS that will be presented in 2021 will include the extension of the EU’s carbon market to new sectors, an overhaul of rules protecting energy intensive industries against the risk of carbon leakage, as well as a review of renewable and energy efficiency laws that have an impact on the functioning of the EU ETS.

“IETA believes that the EU’s carbon market should play the key role to deliver on the EU's objective to reach climate neutrality by 2050 in an economically efficient manner,” Forrister said.

“We urge the Commission to carry out its rule making in a transparent manner, so as to offer certainty and clarity to the market.” 



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