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The European Parliament’s Environmental Committee (ENVI) will vote on the revision of the EU Emissions Trading System (EU ETS) on 16-17 May. E3G and 27 other think tanks, industry associations and NGOs have signed a joint open letter calling for members of the committee to make the EU’s carbon market an effective tool to drive industrial transformation.

To contribute to industrial decarbonisation and to achieving the EU’s 2030 climate target and European Green Deal objectives, the ENVI Committee should vote to:

1. Strengthen the overall ambition of the EU Emissions Trading System beyond the Commission proposal
2. Phase-out of the free allocation of ETS allowances as soon as possible, making it the exception rather than the norm
3. Reinvesting additional auctioned ETS allowances to support the green transition and address investment gaps
4. Not give free allocation to sectors covered by CBAM nor introduce a Carbon Leakage Protection Reserve
5. Strengthen and revise earlier the EU ETS benchmarks
6. Creation of a comprehensive and holistic policy framework

Signatories of the EU ETS open letter to the EP’s ENVI Committee

Read the full open letter on the EU ETS to the European Parliament’s ENVI Committee here.