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Joint Letter to the European Council: Protect the integrity and predictability of the EU Emissions Trading System

Joint Letter to the European Council: Protect the integrity and predictability of the EU Emissions Trading System

Letters

Ahead of the 19-20 March European Council, a group of 35 civil society organisations is calling on EU leaders to protect the integrity and predictability of the EU Emissions Trading System (EU ETS).

The EU ETS remains the EU’s central tool for reducing industrial emissions while supporting the transition to a competitive low-carbon economy. Stable and credible carbon pricing is essential for enabling companies to make long-term investment decisions in clean technologies.

At a time of geopolitical instability and industrial transformation, weakening the EU ETS would increase regulatory uncertainty, delay investment decisions and undermine Europe’s competitiveness in emerging low-carbon industries.

The signatories call on the European Council and Member States to:

Provide clear political backing for a strong, predictable and rules-based EU carbon pricing framework
Allow the European Commission to present the forthcoming EU ETS review through the ordinary legislative process
Maintain the agreed cap trajectory aligned with the EU’s 2030 and 2040 climate targets
Uphold the polluter pays principle, including the agreed phase-out of free allocation
Ensure ETS revenues and the Innovation Fund are used to accelerate low-carbon industrial investment, electrification, circularity and innovation while avoiding fossil-based lock-in, while also contributing to international climate finance commitments

As Europe prepares for the next phase of its climate and industrial policy agenda, preserving the integrity and predictability of the EU ETS will be critical for ensuring the continent remains competitive, energy secure and aligned with its climate goals.

List of signatories
Beyond Fossil Fuels
Bond Beter Leefmilieu
Carbon Market Watch
CEE Bankwatch Network
Centre for Transport and Energy
Clean Air Action Group
Climate Action Network Europe
Climate Catalyst
Climate Coalition – Bulgaria (CCB)
Deutscher Naturschutzring e.V.
ECODES
EKOenergy ecolabel
Environmental Coalition on Standards
European Environmental Bureau
Finnwatch
International Network for Sustainable Energy –
Europe
Irish Environmental Pillar
Jacques Delors Energy Centre
Just Shift
LEGAMBIENTE
Mellemfolkeligt Samvirke
Mouvement Ecologique
NABU e.V.
Natuur & Milieu
Opportunity Green
Réseau Action Climat
Sandbag
SteelWatch
Stop Climate Chaos
Transport & Environment
WISE
WWF EU
Za Zemiata – Friends of the Earth Bulgaria
ZERO – Association for the Earth Sustainability
Zero Waste Europe