12 March 2026
Upholding the integrity of the EU ETS: A civil society letter to EU leaders
Ahead of the 19-20 March European Council, a group of 35 civil society organisations is calling on EU leaders to protect the integrity and predictability of the EU Emissions Trading System (EU ETS).
The EU ETS remains the EU’s central tool for reducing industrial emissions while supporting the transition to a competitive low-carbon economy. Stable and credible carbon pricing is essential for enabling companies to make long-term investment decisions in clean technologies.
At a time of geopolitical instability and industrial transformation, weakening the EU ETS would increase regulatory uncertainty, delay investment decisions and undermine Europe’s competitiveness in emerging low-carbon industries.
The signatories call on the European Council and Member States to:
- Provide clear political backing for a strong, predictable and rules-based EU carbon pricing framework
- Allow the European Commission to present the forthcoming EU ETS review through the ordinary legislative process
- Maintain the agreed cap trajectory aligned with the EU’s 2030 and 2040 climate targets
- Uphold the polluter pays principle, including the agreed phase-out of free allocation
- Ensure ETS revenues and the Innovation Fund are used to accelerate low-carbon industrial investment, electrification, circularity and innovation while avoiding fossil-based lock-in, while also contributing to international climate finance commitments
As Europe prepares for the next phase of its climate and industrial policy agenda, preserving the integrity and predictability of the EU ETS will be critical for ensuring the continent remains competitive, energy secure and aligned with its climate goals.