Recommendations on the EU ETS review proposal

The European Commission’s EU ETS Review proposal sets the direction for the next phase of Europe’s carbon market. IETA welcomes it as a strong basis for aligning the system with the EU’s post-2030 climate and industrial objectives. The reform should be considered as one coherent package, and preserving confidence in the EU ETS throughout the legislative process will be critical.

These recommendations are organised around two complementary objectives: highlighting the core strengths of the proposal that should be preserved, and providing recommendations for targeted improvements where greater clarity, flexibility and refinement will strengthen the framework.

The paper sets out IETA’s policy asks across the reform, including:

a predictable, well-functioning market, with EU–UK ETS linking advanced as soon as possible
an international credits framework ready before it is needed
a broader role for CRCF removals towards 2040
a stronger investment signal through ETS revenues and the Industrial Decarbonization Bank
a workable EU ETS–CORSIA interaction for aviation
a simpler and effective framework for free allocation

Read the full paper now.

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