The EU ETS is envisaged as the cornerstone of EU policy on climate change. It covers 45 per cent of EU CO2 emissions, including power and heavy industry. However, the scheme has faced criticism including serious concerns regarding the oversupply of allowances, leading to a low carbon price and whether it is consequently proving to be effective. In 2016 the EU ETS is being reviewed with a view to setting clear arrangements for the next phase (Phase IV).
Business leaders from The Prince of Wales’s Corporate Leaders Group (CLG) have consistently called on the European institutions to reform the EU ETS so that the system delivers a stronger signal that can effectively underpin their decarbonisation efforts and provide finance to support the development of new technologies. They believe that the Commission’s reform proposal will not adequately strengthen the EU ETS to serve as the key tool to deliver Europe’s existing and future GHG emissions targets or the low carbon economy needed.
17 February 2016 – Today, heads of some of Europe’s largest businesses called for decisive reform to the EU Emissions Trading System (EU ETS), as a vital first step to demonstrate commitment to delivering the ambition enshrined in the Paris Agreement.
10 July 2015 – Report released by The Prince of Wales’s Corporate Leaders Group shows ETS has helped companies focus on carbon emissions reduction.