FuelsEurope statement on the proposed Market Stability Mechanisms under EU ETS Directive
FuelsEurope supports the EU ETS as the EU’s ‘flagship instrument’ within its energy and climate policy framework, as a cost-effective market mechanism for emissions reduction in the power and industry sector.
FuelsEurope notes that:
- because of its fixed cap, the 2020 EU ETS reduction target will be achieved;
- the EUA market is robust, liquid and has been growing in volume since its birth in 2005;
- any Commission legislative proposal on the ETS needs to address the interlinked issues of carbon leakage post-2020 and the level of ambition for emissions reduction for EU ETS sectors by 2030 Phase 4 EU ETS Cap.