During the course of the new European Commission mandate, Member States are expected to raise more than 200billion in EU ETS revenues. Industry groups and governments are claiming these revenues to cover for their own costs, fill financial gaps, with little consideration to system needs and the principles guiding the ETS Directive. These revenues need to be spent wisely to achieve the most direct emission reduction and to shield vulnerable citizens from bearing excessively the costs of the transition.
This is why Carbon Market Watch, alongside 29 other organisations, urge the new College of Commissioners to take up our recommendations on how to effectively use these revenues to guarantee they are invested for our citizens, society, and communities:
- Amend the EU ETS Directive to ensure additionality and Do No Significant Harm principles are guiding the revenue spending;
- Focus on significant climate investments for industry, rather than carbon leakage protection, by phasing out all free allocation to increase the Innovation Fund, and end indirect cost compensation in the next ETS review;
- Support affordability of the necessary emission reductions for lower income groups through ETS2 revenues and expansion of the Social Climate Fund;
- Monitor Member States spending and enforce the earmarking foreseen by the ETS Directive.
The transition must financed, in Europe and globally. Let the polluters pay for it.
Join us and sign the joint letter! Please contact lidia.tamellini@
To learn more about EU ETS revenues and how we use them, check out our EU ETS revenue simulator.
