With the new climate objectives, the European Commission intends to revise the EU-ETS. AFEP supports the EU-ETS, and shares its proposals to maintain the competitiveness of companies in a context of increased risks of carbon leakage associated with higher climate ambition.
- A detailed impact assessment is needed to evaluate the additional efforts that companies will have to make to reach the new 55% GHG reduction target.
- In order to address the risk of carbon leakage, the allocation system of free allowances must be maintained in complement to a voluntary Carbon Border Adjustment Mechanism (CBAM) at the sectoral level.
- The transport and building sector as well as the use of fossil fuel should not be included in the current EU-ETS system given their different abatement costs. They can neither be part of a common EU ETS.
- The resources generated by the EU-ETS should be used to finance innovation and climate transition.