21 October 2014

  |  CBI Press Team

News

CBI sets out a vision for the future of the EU emission trading system

Ahead of the October European Council meeting, where the future of the EU’s energy policy will be high on the agenda, the CBI has published a position paper on the future of the EU Emissions Trading System.

European Flag in Brussels

Download the briefing paper here >>

The CBI believes that, if designed well, a smart European energy and climate change policy framework can support the competitiveness of European industry, keep energy prices under control for consumers and attract the €1 trillion investment needed to meet our environmental targets and secure our energy supplies.

As a market-based system, the EU ETS has the best potential to reduce greenhouse gas (GHG) emissions in the most cost-effective way, and create a clear market signal to drive low-carbon investment across Europe.

However, it is not currently delivering on this potential. We need to have a strong ETS in place that will command the confidence of businesses from every sector and the markets themselves. As such, we need comprehensive and coordinated reform of the whole system that will stand the test of time.
The CBI’s paper therefore argues:
• The ETS should remain the cornerstone of EU energy and climate policy, but it is falling short of its potential
• The first step to reform must be securing political agreement on a 2030 emissions reduction target
• This must be underpinned by holistic and long-lasting ETS reform in order to instil confidence in the market
• The ETS must work for all businesses in order to drive sustainable growth
• EU leadership on ETS can drive confidence in other markets and set a global example