NGOs and industry frontrunners ask co-legislators to agree on an ETS and CBAM that work for climate and industrial transformation
Posted on 07 November 2022
Over 22 NGOs and industry frontrunners are asking co-legislators, in an open letter, to agree on an EU Emissions Trading System (ETS) reform and a Carbon Border Adjustment Mechanism (CBAM) that work for the climate and support industrial transformation.
As the EU ETS and CBAM trilogues are ongoing, the co-signatories underline that a strong reform of the EU ETS and a well-designed CBAM can truly help slash emissions from the industrial sector. To reach the 2030 EU climate target and achieve the massive emissions reductions in the industrial sector, the following elements must be included in the final CBAM and ETS legislation:
Free ETS allowances are phased-out as soon as possible
Better and timebound targeting of free ETS allowances
“With these ETS and CBAM negotiations, it is critical for co-legislators to agree on supporting industrial transformation by ending freebies for industry as soon as possible and spend the money on the green transition instead,” said Camille Maury, Senior Policy Officer at WWF European Policy Office.
“What’s more, free ETS allowances must be made conditional on both energy efficiency requirements and decarbonisation plans, so industries under the EU ETS have an incentive to decarbonise,” stated Camille Maury.
ETS reform and CBAM should protect the climate but also support industry reform.