The EU ETS, as Europe’s central climate policy tool for industry, has to be designed in such a way that it effectively enables to reduce GHG emissions overall while strengthening the EU’s global competitiveness. ERT take the view that the reform of the EU ETS (phase IV) requires a number of essential elements.
- A stable and predictable long-term policy framework that ensures continuity, coherence and effectiveness is essential for the transition to a low-carbon society.
- Towards global carbon pricing while safeguarding the global competitiveness of sectors at risk of carbon and investment leakage until a global level playing field is achieved.
- A future-proof ETS takes account of the opportunities offered by the COP21 Paris Climate Agreement to allow reaching the targets in the most cost-effective way.
- The EU ETS should be considered as part of an ambitious innovation agenda stimulating solutions and investment for the transition towards a low carbon society.