The ETS post-2030 must ensure a realistic and feasible decarbonisation trajectory for energy-intensive industries.
The current EU ETS trajectory should be revised in the upcoming review of the ETS Directive to take into account the agreed 2040 target in a manner that would allow for a limited amount of emissions after 2039.
The Commission should consider a slower phase-out pathway for free allocation of allowances to support decarbonisation, investment and employment in Europe.
Cefic recognises the improvements made by the Council to the original proposal. We need industry to be competitive to transition and invest in meeting the climate targets.
Targets and EU ETS are not enough. Cefic urgently calls to take policy action to:
- Create market demand for low-carbon and circular products;
- Lower the energy and feedstock prices in Europe;
- Deliver critical energy and carbon infrastructure to get us the energy; and
- Protect industry from the risk of carbon leakage.
“The clock is ticking. The chemical industry is currently facing one of its most severe economic downturns. Without the feasible and realistic trajectory and clarity on timing, infrastructure, and market conditions, industry cannot transform”
said Marco Mensink, General Director of Cefic