Green Growth Group Statement: EU ETS Phase IV

9 Jul 2015 03:34 PM

Green Growth Group Ministers issued the following joint statement on 9 July 2015.

  1. We welcome the increasing engagement of companies calling for robust climate policies around the world including sustained and ultimately interlinked carbon pricing regimes to support the cost-effective global low-carbon transition necessary to combat climate change and deliver competitive low-carbon growth. Reducing emissions at the necessary rate to meet the below two degree goal is a challenge, but one which presents significant opportunities for job creation and green growth.
  2. We agree that to reduce business uncertainty, and stimulate investments in safe and sustainable low-carbon technologies and resources at the right pace, governments need to set early, clear, stable, long-term and ambitious low-carbon policy frameworks.
  3. We look forward to engaging with businesses and other interested parties, to work towards this end both in Europe and internationally.
  4. With this in mind, it is essential that the EU builds on past experiences and organises its carbon pricing regime appropriately. The EU Emissions Trading System (ETS), the cornerstone of the EU’s low-carbon strategy, must provide the long-term, stable and effective low-carbon framework and strengthened price signal required by businesses and investors to drive the cost-effective low-carbon transition that Europe needs.
  5. We welcome the recent trilogue agreement on the Market Stability Reserve (MSR) and finalising it is an essential first step towards effective reform. Therefore, it is necessary to ensure this ambition is maintained through further reform post-2020. The EU now needs to set the ETS on firm foundations for the long-term.
  6. We therefore call on the Commission to bring forward a robust and comprehensive ETS Phase IV package as soon as possible, while promoting growth, jobs, and the European Union’s industrial competitiveness. This will provide the clarity businesses and investors need, demonstrate to our international partners the EU’s commitment to implementing its 2030 GHG target and help accelerate efforts towards effective international climate action, including carbon pricing arrangements. The proposals should include:
  1. Further, given the linkages between the EU ETS Phase IV and the Effort-Sharing Decision (ESD), and to enable an early agreement on the legislative implementation of the overall 2030 climate and energy package, it is important that the Commission brings forward its ESD proposals early after the Paris COP and by the end of the first quarter of 2016 at the latest.
  2. Within the broader framework of the Energy Union, a stable, robust and effective EUETS Phase IV framework will help to unlock the necessary investments in energy technologies and priority infrastructure, including for interconnections.
  3. We look forward to engaging constructively with all Member States, MEPs, businesses, investors and civil society on these issues over the coming months.

Supported by the following Ministers