The ETS has emerged as the backbone of EU Climate Action and, especially in the last two years, as a crucial driver of decarbonisation. The Commission proposal to review the EU ETS Directive aimed at aligning the emissions pathway of the ETS sectors with the new EU climate targets. Throughout the next decade, the ETS is required to both enable a deep decarbonisation of the power sector and to tackle industry’s emissions, while avoiding carbon leakage.

Following the adoption of the EU ETS Directive in 2022, this event took stock of the final shape of the legislative text.

Following the presentation by DG CLIMA of the adopted EU ETS Directive, the reactions from high level speakers will be followed by questions from the audience that addressed:

·     Ambition, cap and Linear Reduction Factor (LRF).

·     Carbon leakage, free allocation and indirect cost compensation.

·     Role of non-compliant entities and transparency.

·     Extension of carbon pricing to new sectors.

·     Market Stability Reserve (MSR).

This event provided a first opportunity to exchange views on the adopted provisions.

Agenda