You’ll find below EEX’s position paper on increasing the EU’s 2030 climate ambition which we contributed to the European Commission’s consultation on the topic. Our key messages are:
- EEX supports increasing the EU’s 2030 climate target to at least 55%. Joint action on emissions trading will be a key element for delivering on increased climate ambition. National targets combined with trading of annual emissions allocations as currently in non-ETS sectors are a second-best option.
- A strong carbon market price signal is key to efficient emissions reductions. Free market pricing on the wholesale market is decisive for this, allowing market participants to efficiently manage their exposure on the market. We see proposals to add additional steering elements, such as a carbon floor price, critically.
- The EU ETS should be the backbone of the Europe’s recovery plans. Emissions reductions can be achieved at lower cost while the economy is recovering without putting at risk attainment of emissions reduction targets.
- Emissions trading should be expanded to additional sectors of the economy. Inclusion in the EU ETS preferred option, national policy initiatives can be an intermediary step. Policy compatibility and a clear commitment and timeframe for swift integration should be key principles for the design of such initiatives.
- Increased climate ambition should be combined with increasing the auctioning share. A continuous increase of the auctioning share during the trading phase would provide the greatest possible predictability for market participants.
- Global cooperation in carbon pricing and climate diplomacy need to be further intensified. This offers significant potential for cooperation between different trading schemes, for instance in the form of linking.