ETS2 is a cornerstone of the EU’s climate and energy framework, supporting investments in clean technologies for buildings, road transport and SMEs, while generating revenues to support vulnerable households and businesses in the energy transition. Recent discussions on delaying or weakening ETS2 risk undermining regulatory certainty and slowing down climate action.
In the joint letter, we call on EU institutions and Member States to:
- Operationalise ETS2 in 2028 with no further delays or increased carbon budget, in order to maintain a robust and predictable carbon pricing framework and support long term investment decisions.
- Implement strong complementary climate, social and fiscal policies to reduce demand for emission allowances, facilitate investments and support lower income households, including through measures with a pre‑2030 impact.
- Ensure transparency and public participation in the use of ETS2 revenues at national level, with revenues invested in clean technologies such as energy efficient buildings, zero emission transport, renewable energy, grids and flexibility, while safeguarding social fairness.
The signatories underline that further delay or weakening of ETS2 would postpone critical climate action and undermine investment certainty, while a one year delay is estimated to cost Member States €50 billion in lost auctioning revenues. Protecting ETS2 and ensuring its ambitious implementation is essential to strengthen the EU’s energy security, competitiveness and social resilience.
Joint letter calling for an ambitious implementation of ETS2
Read the full letter
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