Ahead of the European Council meeting of 19-20 March 2026, Carbon Market Watch together with civil society partners is calling on EU leaders to safeguard the integrity and predictability of the EU’s Emissions Trading System (EU ETS).
Europe’s industrial resilience, strategic autonomy and global climate leadership depends on a stable and credible carbon pricing framework.
Our demands:
● Uphold Europe’s position as a global leader on climate policy and provide clear political backing for a strong, predictable and rules based carbon pricing framework insulated from short-term political intervention;
● Allow the European Commission to present its forthcoming EU ETS review, to be addressed t rough the ordinary legislative process, with Member States fully exercising their role within the Council;
● Maintain the agreed cap trajectory in line with the legally mandated 2030 and 2040 climate targets and safeguard the integrity of the Market Stability Reserve;
● Uphold the polluter pays principle across the agreed upon phase-out timeline of free allocation and the yet to be defined phase-out timeline of free allocation for non-CBAM sectors;
● Safeguard and strategically deploy ETS auction revenues and the Innovation Fund to accelerate low-carbon industrial investment and emissions reductions, ensuring funds support electrification, circularity, renewable energy and innovation while avoiding fossil-based lock-in, and contributing to international climate finance.
