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Business leadership for a climate neutral economy
European Parliament Fit for 55 plenary vote

8 June 2022 - Today, the European Parliament Plenary voted to return the revision of the EU Emissions Trading Scheme (EU ETS) back to Committee and to postpone the votes on the Carbon Border Adjustment Mechanism (CBAM) and the Social Climate Fund (SCF). In response CLG Europe calls on all MEPs to work towards ensuring increased ambition and a coherent agreement on the Fit for 55 Package.

Ursula Woodburn, Head of EU Relations, CLG Europe said:

"The European Parliament now has a second chance on the EU Emissions Trading Scheme, the Carbon Border Adjustment Mechanism and the Social Climate Fund. A strong agreement on these three key files is a much-needed step to upgrade the EU’s 2030 target, provide the right policy signals to business and unlock investment in the transition to a climate neutral economy.   

The European Parliament should reflect the EU’s ambition and commitment to deliver the green transition through support from all political groups for an ambitious, coherent, and effective outcome. The continuing devastation in Ukraine reminds us once again that our overdependence on volatile, imported fossil gas, oil and coal is at the heart of today’s climate, energy, and geopolitical crises. Now more than ever the EU needs to provide a strong signal that fossil fuels will not be awarded or protected in the revised EU ETS system and that it will instead accelerate the transition from fossil fuels by supporting the deadlines for their phase out.”

CLG Europe advocates for a strengthened and ambitious EU ETS in order to put the EU on a path consistent with the Paris Agreement and ensure implementation of the EU Climate Law. CLG Europe believes free allowances cannot continue in their current form if the EU is to meet its 2030 and 2050 emissions reduction objectives and should be phased out as fast as possible for those sectors that do not face low-carbon competition from overseas on a large scale. In this context, CLG Europe highlights that free allowances phase out coupled with more investments in clean technologies through a reinforced Innovation Fund (rebranded as the Climate Investment Fund) is a welcome effort.

Please see more information about the CLG Europe’s Fit for 55 Hub here

For enquiries, please contact:

Pascale Palmer

Pascale Palmer, Senior Media Advisor

Email | T: +44 7432 533 080

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