CEEP, EFET and Eurelectric joint statement- Assessing policy overlap impacts on the EU ETS

News Article

CEEP, EFET and Eurelectric signed a joint statement which states their wish for a strengthened governance of the EU ETS, along with coherent and streamlined energy and climate policies. This is crucial to allow for a robust, market-driven, carbon abatement price signal to emerge.

The associations believe that the EU Commission and Member States need to take a more active role in identifying and assessing the potential impact of such policy overlaps on carbon prices. This task should be approached via the EU Regulation on the Governance of the Energy Union (“the Governance Regulation”).

Through this statement, the associations reiterate that their goal is not to restrict the ability of the Member States and the EU to pursue decarbonisation objectives through market based financial support for RES investment and harmonised standards to improve energy efficiency, but to ensure the impact of these measures is managed in order to avoid prorogued oversupply of EUAs through adjusting their supply.

There is also a concern that in the second draft of the four-column document, the proposed amendment is not reflected by the Council. Therefore, the associations encourage the European Parliament to ensure that its proposals on overlapping policies’ impact on the EU ETS are fully recognised by the European Commission and the Council and ultimately adopted in the final text. 1

The associations strongly call on the EU Commission and Member States to incorporate the aforementioned amendments proposed by the Parliament in the final text of the Governance Regulation.

To see the full statement, click HERE