The European energy sector has consistently supported the EU emissions trading system (ETS) as the main instrument of the EU climate policy. In their joint paper that has been sent to the European Commission, several energy utilities call for a prompt and strong revision of the EU ETS.
The main points of the letter are:
- The EU ETS plays a key role, but all sectors must contribute jointly
- A higher LRF needs to take effect from 2023
- Tighter MSR is needed to ensure future market resilience