The governments of eight European Union countries are calling for the preservation of the carbon market. This appeal was a response to widespread criticism of the Emissions Trading System (EU ETS) and demands to suspend this mechanism.
This was reported by Politico, which reviewed the text of the intergovernmental appeal.
The appeal was signed by the governments of Denmark, Spain, Portugal, Slovenia, Sweden, Finland, the Netherlands, and Luxembourg.
“EU ETS is crucial for providing the signals necessary to strengthen European industry and stimulate decarbonization and reindustrialization based on domestic, clean, and affordable energy sources, while also ensuring economic security,” the joint statement reads.
The document was released ahead of a series of high-level meetings to be held next week in Brussels. Specifically, these include a summit of leaders and two ministerial-level meetings. It is expected that the fate of the European emissions trading system and energy prices will be central to the discussions among European leaders.
"An alarming step backwards"
The war with Iran has only intensified the debate surrounding carbon and energy prices. In particular, this week, Italian Prime Minister Giorgia Meloni called for the ETS to be put on hold. However, such calls are causing concern in a number of countries.
“Introducing fundamental changes to the ETS, questioning the ETS instrument itself, or suspending it would be a very worrying step backward, not only in terms of climate ambitions but also through the weakening of carbon price signals that underpin investment and market stability,” warn the government officials from the eight states in the appeal.
They stress that the ETS system should only be reviewed for targeted adjustments. This should preserve the bloc’s stability without undermining its long-term climate goals.
EcoPolitic reported that after criticism of the ETS from German Chancellor Friedrich Merz, the market responded with a drop in the carbon price.
Italy’s Minister of Industry, Adolfo Urso, openly stated that the ETS should be put on hold pending review, as it could lead to the collapse of European industry.
