EURELECTRIC calls for trilogue negotiations to deliver strengthened EU ETS

12 September 2017

With negotiations on the reform of the European carbon market set to resume this week, EURELECTRIC urges policymakers to finalise deliberations swiftly on a strengthened EU ETS and ensure legal clarity for European investors. 

“Investors across Europe have been waiting for months to understand what form the EU ETS will take after 2020. They need certainty to take informed decisions on low-carbon investments,” said EURELECTRIC Secretary General, Kristian Ruby. “We call on Members of the European Parliament and EU Member States need to reach swift agreement on an ambitious ETS reform.”

The EU ETS is set to play a key role in ensuring the cost-effective low-carbon energy transition. The power sector has repeatedly called for increasing the level of ambition to ensure a robust carbon price signal under a reformed and strengthened ETS.

Specifically EURELECTRIC calls for short and long-term measures to strengthen the EU ETS:

  • increasing the Market Stability Reserve intake rate from 12% to 24% from 2019 until at least 2023;
  • increasing the LRF to at least 2.4% as soon as possible to guarantee long-term predictability of the system and to bring the EU ETS in line with the EU’s long-term climate objectives.

EURELECTRIC also supports cancellation of ETS allowances which is carried out in a predictable and rules-based manner, as this can contribute to the long-term predictability and credibility of the system.

Finally, in order to lower costs for the electricity sector in Member States with lower GDP/capita levels, EURELECTRIC supports a proportional increase of the Article 10c derogation of between 40% and 80% and Modernisation Fund of between 2% and 4%.

“It is time we get progress. Investors are waiting for policymakers to deliver,” Kristian Ruby said.

 

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