European Green Deal

Joint Statement in support of a strong and stable EU Emissions Trading System, signed by 21 organisations including EGEC.

Europe’s competitiveness and energy security hinge upon a strong and stable EU ETS

At the European Leaders Summit in Alden Biesen, the EU-27 Heads of State and Government reaffirmed that Europe’s energy transition remains the best strategy to achieve long-term strategic autonomy and low energy prices. Yet, some leaders suggested Europe must intervene now and backtrack on its flagship climate change instrument – the EU Emission Trading System.

Europe’s competitiveness and energy security require the fast deployment of more clean energy and industrial decarbonisation solutions. Stable and credible policy instruments like the EU ETS are the bedrock for such investments. The EU ETS provides an efficient, market based, and technology-neutral signal guiding industry’s capital allocation, risk management and industrial transformation.

It is important to recall a simple fact, however: the EU ETS works. Combined with marginal pricing in electricity markets, it provides a clear signal that prioritises the dispatch of clean energy in real time and incentivises investment in low-carbon technologies. Since 2005, emissions in ETS-covered sectors have fallen by 50% while economic output has grown by 71%, proving that decarbonisation and competitiveness go hand-in-hand. The EU ETS has been instrumental in driving Europe’s push for clean energy, while reducing dependency on fossil fuel imports.

Europe should not repeat the mistakes from the energy crisis when ad hoc interventions in core market fundamentals undermined investments in competitive electricity assets and industrial decarbonisation projects. Undermining the EU ETS or introducing short-term corrective interventions will raise the cost of capital and delay Final Investment Decisions for clean energy projects. Such instability would undermine the bankability of clean energy and industrial decarbonisation projects — investments needed to lower European energy system costs, strengthen energy security, and enhance Europe’s competitiveness.

At a time of geopolitical instability and industrial transformation, concerns about energy prices and competitiveness are legitimate and must be addressed. This is where the upcoming EU ETS review can provide a way forward: a targeted update of selected ETS parameters can enhance predictability and address emerging competitiveness concerns, while preserving the system’s integrity and long-term investment signal. With approximately €43 billion generated in 2025 alone, the ETS also offers a powerful opportunity to further reinforce competitiveness through strategic revenue recycling into industrial decarbonisation. Strengthened by the Carbon Border Adjustment Mechanism (CBAM), the EU ETS is a powerful
tool for Member States to strategically invest in Europe’s long-term competitiveness, as highlighted by Mario Draghi in his European Competitiveness Report.

Regulatory stability remains fundamental to drive investments and financing across Europe’s electricity sector and industrial value chains. We call on European Leaders to stay the course on the EU ETS for Europe’s energy security and industrial competitiveness amidst this dynamic geopolitical context.

List of signatories:
Carbon Capture & Storage Association
Climate Group (international NGO)
Danish Chamber of Commerce
E3G (transnational think tank)
Energy Traders Europe
Eurelectric
European Energy Exchange (EEX)
European Geothermal Energy Council (EGEC)
European Heat Pump Association (EHPA)
French Electricity Union / Union Française de l’Électricité (UFE)
German Association of Energy and Water Industries (BDEW)
Hydrogen Europe
Intercontinental Exchange, Inc. (ICE)
International Emissions Trading Association (IETA)
Nuclear Europe
Renewable Hydrogen Coalition
Rockwool
SolarPower Europe
Stegra
Wind Europe
World Business Council for Sustainable Development (WBCSD)

Joint Statement (PDF version)

Planned for publication in the second quarter of 2026, the EU Heating and Cooling Strategy will support the implementation of current legislation to accelerate decarbonisation of the sector and improve its efficiency and system integration through

• integrated planning of energy infrastructure


• district heating and cooling development


• waste heat recovery

It will address both supply and demand by accelerating the deployment of clean heating and cooling, and by encouraging their use in important sectors such as buildings and industry.

EGEC submitted its response to the stakeholder consultation on 19 November 2025.

 

EGEC's response to consultation on the Heating and Cooling Strategy (PDF)

The Modernisation Fund supports the modernisation of energy systems and the improvement of energy efficiency in 13 lower-income EU Member States. Established in 2018 for the 2021-2030 period, it aims to help the beneficiary Member States achieve their climate targets and the objectives of the European Green Deal. The beneficiary Member States are Bulgaria, Czechia, Estonia, Greece, Croatia, Latvia, Lithuania, Hungary, Poland, Portugal, Romania, Slovenia and Slovakia.

In 2025, the European Commission launched an initiative to evaluate the Modernisation Fund’s operating rules. EGEC submitted its contribution to the Call for Evidence on 26 May 2025.

 

EGEC response to the consultation on the Modernisation Fund (first evaluation of the operating rules) (PDF)