en.Wedoany.com Reported - Around twenty multinational companies, including Google, Microsoft, IKEA, Coca-Cola, Amazon, Volvo, and Spain's Iberdrola and Acciona, issued a joint statement this Monday supporting the EU Emissions Trading System (ETS) and emphasizing the importance of maintaining the integrity of this tool. The move comes as some EU member state governments call for a suspension of the ETS, while eight European countries, including Spain, have also publicly voiced their support, viewing the ETS as central to EU climate policy.
Since 2005, the EU Emissions Trading System has put a price on carbon dioxide emissions from specific industries, aiming to promote the use of clean energy and reduce dependence on fossil fuels through economic incentives. The system requires high-emission facilities to pay for every tonne of emissions, prompting many countries to shift towards renewable energy.
As the European political landscape changes, environmental policies face reassessment, with the ETS becoming a focal point. Countries like Italy have called for a suspension of the system due to rising energy prices, while Germany has proposed increasing the allocation of free emission allowances. However, last week, the governments of eight countries, including Spain, Denmark, and Finland, warned that phasing out free allocation is crucial for the industrial transition to decarbonization.
These multinational companies criticized the EU's backsliding on climate policy, pointing out that weakening key measures, such as car emission standards or the trajectory for phasing out ETS allowances, could impact the electrification process and the EU's competitiveness. They called for a stable regulatory framework focused on the design and implementation of a new generation of energy policies for the post-2030 period.
The corporate statement emphasized that the EU needs to accelerate emissions-free electrification to break free from fossil fuel dependence and leverage investment benefits to maintain the momentum of the transition. The statement was released during the Green Growth Summit in Brussels, driven by the European Corporate Leaders Group, just a week before the Energy Ministers' meeting and the European Council.
Energy prices and fossil fuel dependence will be core issues at the European Council, with pressure to revise the ETS increasing due to recent events. European think tank E3G stated that European leaders need to balance market stability with long-term decarbonization goals to avoid deepening structural vulnerabilities. Experts noted that the voice of businesses supporting a strong carbon pricing system is growing, and an effective carbon price is crucial for driving decarbonization.
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