Alstom one of 38 companies calling for EU ETS backloading to encourage low carbon investment
Thursday, Apr 18, 2013We 38 companies and associations totalling circa €800 billion turnover covering a wide spectrum of industries ranging from energy intensives on the carbon leakage list, power companies, technology developers and many more are calling for urgent action.
We ask you to vote in favour of the environment committee report which gives support to the EU ETS auction time profile (backloading) amendment.
The EU ETS was designed to be the most cost-effective means to reduce greenhouse gas emissions in line with the EU’s 2050 climate target, whilst at the same time, creating incentives for investments in low-carbon technologies by reinforcing a clear, long-term carbon price signal. The effectiveness of the EU ETS has been undermined by a surplus of allowances. The current carbon price (circa €4/t) will not stimulate low-carbon investments or innovation. Without agreement on the backloading proposal the price will fall further thus threatening the long term survival or ETS.
A failure of the EU ETS would distort the internal market with the emergence of a patchwork of 27 different energy and climate measures ranging from regulations to taxation. Globally (Australia, China, California and South Korea) carbon markets are emerging in order to foster investments in low carbon technologies. The EU has an opportunity to stimulate our own economy through the development of new and low carbon industries while at the same time continuing to show global leadership on climate change issues. However, policy makers must act now to support the ETS.
This is a necessary and important first step paving the way for essential structural measures to ensure the integrity of the EU ETS.