Key issues in the EU ETS revisionAntonio Fernandez
Author(s): Andrei Marcu, Thomas Mertens
This paper outlines ERCST’s opinion on critical topics in the ETS revision discussions ahead of the report by the rapporteur of the ENVI committee, on January 14, 2022.
Observers and stakeholders generally agree that the revision to the EU ETS needs to ensure that the transition results in a prosperous and decarbonized, but not deindustrialized Europe.
In this, it does need to consider the realities of the international framework under which the EU operates, including the results of the 2023 and 2028 stock takes that will take place under the Paris Agreement, with attention not only to the mid-century long-term decarbonization targets, but also the intermediate milestones in the 2030s.
In its proposal for the EU ETS review, the Commission introduces a range of changes both in terms of updated parameters, as well as structural changes. Overall, the proposal strikes a good balance between accelerating the transition and avoiding a deindustrialised Europe. However, some remaining issues must be highlighted.