Recommendations on Funding Mechanisms in the Revised EU ETS

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.

  1. Ensure auctioning revenues are fully mobilised to for climate and energy purposes
  2. Safeguard the solidarity mechanism from the functioning of the Market Stability Re serve (MSR )
  3. Ensure an adequately increased Modernisation Fund
  4. Maintain trust and stability by keeping financing rules for the Modernisation F und unchanged until the 2024 review
  5. Taking additional factors into account when distributing the modernisation fund among MS
  6. Ensure sufficient revenues are mobilised through the Innovation F und to finance breakthrough low-carbon technologies
  7. Explore additional financing options to deploy low-carbon technologies at scale

Climate Policy Priorities for the Next European Commission