Published on 29 June 2026
Overview
Europe's upcoming review of the EU Emissions Trading System (ETS) comes at a decisive moment for the continent's competitiveness, energy security and industrial transformation. As Europe seeks to reduce its dependence on imported fossil fuels, the ETS must continue to provide a stable and predictable investment framework that accelerates renewable energy deployment and industrial electrification.
In this position paper, WindEurope sets out the following recommendations:
1. Preserve a stable and predictable ETS framework.
2. Maintain an ambitious cap trajectory.
3. Keep the Market Stability Reserve rules-based and free from political intervention.
4. Strengthen ETS safeguard mechanisms without weakening the price signal.
5. Align free allocation with industrial electrification and decarbonisation.
6. Prioritise and enforce ETS revenue use for renewables-based electrification.
7. Limit the role of carbon removals in the ETS.
8. Avoid weakening the ETS through international credits.
9. Extend ETS scope only following careful assessment and harmonised EU-wide rules.
In this position paper, WindEurope sets out the following recommendations:
1. Preserve a stable and predictable ETS framework.
2. Maintain an ambitious cap trajectory.
3. Keep the Market Stability Reserve rules-based and free from political intervention.
4. Strengthen ETS safeguard mechanisms without weakening the price signal.
5. Align free allocation with industrial electrification and decarbonisation.
6. Prioritise and enforce ETS revenue use for renewables-based electrification.
7. Limit the role of carbon removals in the ETS.
8. Avoid weakening the ETS through international credits.
9. Extend ETS scope only following careful assessment and harmonised EU-wide rules.