Open letter: EU ETS revenues from polluters to people
Posted on December, 13 2024
From 2024 to 2030, Member States are expected to raise more than € 200 billion in revenues from the EU Emissions Trading System (ETS). These revenues need to be spent wisely to achieve the most direct emission reduction and support vulnerable citizens from bearing excessively the costs of the transition.
WWF EPO, alongside 28 other organisations, sent an open letter to the new College of Commissions to take up civil society organisations recommendations on how to effectively use these revenues in order to spend them on real climate action, citizens and communities.
Key recommendations are:
Key recommendations are:
- Amend the EU ETS Directive to ensure additionality and Do No Significant Harm principles are guiding the revenue spending;
- Focus on significant climate investments for industry, rather than carbon leakage protection, by phasing out all free allocation to increase the Innovation Fund, and end indirect cost compensation in the next ETS review;
- Support affordability of the necessary emission reductions for lower income groups through ETS2 revenues and expansion of the Social Climate Fund;
- Monitor Member States spending and enforce the earmarking foreseen by the ETS Directive.
Learn more about WWF work on the use of EU ETS revenues, check out WWF latest report on how Member States spent their ETS revenues (from 2013 to 2021): Where did all the money go?
Industry
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Industry
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