Advisory bodies and councils on climate, environment and sustainable development from across Europe, including those in Denmark, Finland, Germany and the Netherlands, have issued a joint letter urging the European Commission, EU Parliament, Council of the EU, the European Council, national governments and parliaments not to weaken the European Union’s Emissions Trading System (ETS). As the ETS undergoes revision, several member states have called for a softer approach. The councils strongly urge policymakers to maintain the current framework and avoid delays or weakening of existing commitments.
Consequences
According to the councils, weakening the EU Emissions Trading System would jeopardise global climate action and, with it, the wellbeing of current and future generations. A sustainable and competitive industrial base is essential for safeguarding Europe’s security, innovation capacity, economic strength and resilience.
A robust EU ETS , combined with broader national and European policy measures, can drive the investments and innovation needed to secure Europe’s long-term competitiveness. Suspending or weakening the system, the councils warn, would have several negative consequences:
- Weakening ETS1 and delaying ETS2 would prolong Europe’s dependence on fossil fuels and leave the European Union more vulnerable to future fossil energy crises.
- It would put Europe’s legally binding climate neutrality objective at risk by slowing the pace of necessary emissions reductions.
- It would disadvantage companies that have already invested in decarbonisation while rewarding those that have fallen behind. Vital investments in clean industry and energy would be postponed even further.
- While it may temporarily reduce the price of emissions allowances, weakening the ETS now could ultimately lead to higher carbon prices in the longer term.
- Weakening or delaying the ETS would also place greater pressure on national governments, which would need to strengthen their climate plans to meet the EU’s 2040 and 2050 climate targets. This could create an uneven playing field for businesses—precisely the problem the ETS was designed to address.
Revision of the EU ETS
The EU Emissions Trading System is one of the European Union’s most important tools for reducing greenhouse gas emissions. The planned revision covers all components of the ETS that apply to the power sector and industry. Negotiations on the revision are expected to conclude in the first half of 2027.
Climate Councils Join Forces
The EU ETS is a cornerstone of both European and Dutch climate policy. Weakening or suspending the system would make it significantly more difficult to achieve climate goals. This prompted the Netherlands Scientific Climate Council (WKR) to join forces with European advisory bodies on climate change, environment and sustainable developmentfrom other EU member states in drafting a joint letter addressed to the European Parliament and the governments of the participating countries. The letter was developed in cooperation with the climate councils of Denmark, Finland and Germany and has been signed by 12 advisory bodies and councils from across Europe.
- WKR (Netherlands Scientific Climate Council)
- Finnish Climate Change Panel
- Danish Council on Climate Change
- SRU (German Advisory Council on the Environment)
- Rli (Council for the Environment and Infrastructure, Netherlands)
- Finnish Expert Panel for Sustainable Development
- WBGU (German Advisory Council on Global Change)
- Climate Change Advisory Council (Ireland)
- National Council for the Environment and Sustainable Development (Portugal)
- Swedish Climate Policy Council
- NFFT (Hungarian Council for Sustainable Development)
- Icelandic Climate Council