Recommendations on Funding Mechanisms in the Revised EU ETS
AUTHOR(S): Andrei Marcu, Domien Vangenechten, Angelina Bartosik (CEEP)
ERCST and CEEP put forward the following recommendations in light of the review of the EU ETS under the European Green Deal.
- Ensure auctioning revenues are fully mobilised to for climate and energy purposes
- Safeguard the solidarity mechanism from the functioning of the Market Stability Re serve (MSR )
- Ensure an adequately increased Modernisation Fund
- Maintain trust and stability by keeping financing rules for the Modernisation F und unchanged until the 2024 review
- Taking additional factors into account when distributing the modernisation fund among MS
- Ensure sufficient revenues are mobilised through the Innovation F und to finance breakthrough low-carbon technologies
- Explore additional financing options to deploy low-carbon technologies at scale
