Benchmark values for heat and fuel - Related Opinions

The EU emissions trading system (ETS) is the key policy tool for achieving the EU's climate targets. The existing ETS (ETS1) aims to reduce greenhouse gas emissions from industrial and energy installations, aircraft operators and maritime transport by setting a price on carbon through a cap-and-trade system.

The Commission's ETS revision proposal is expected to address several issues, notably the role of carbon dioxide removals, the expansion of the current scope to additional sectors and GHGs not yet covered by the ETS, new rules on how to account for non-permanent carbon capture and utilisation, and the risk of carbon leakage in sectors not covered by the carbon border adjustment mechanism.

The European Economic and Social Committee emphasizes the urgent need for climate action to prevent the worst impacts of climate change from affecting societies and, ultimately, the EU population, and views the European Climate Law as a key instrument in achieving this goal. CO₂ levels emitted into the atmosphere have continued to rise globally, with a new peak being reached in 2023. The EESC is convinced that the greatest support for climate policy will be established if the overall aim is to achieve the highest greenhouse gas emissions reduction at the lowest socio-economic costs.

The EU ETS was launched in 2005 and covers about 45 % of EU greenhouse gas emissions. The latest revision of the EU ETS Directive, adopted in 2018, sets the total quantity of emission allowances for phase 4 (2021-2030), in line with what was the current EU emission reduction target at the time (40 % reduction below 1990 levels by 2030).