Importantly, Heads of States and governments decided go ahead with a binding target of at least 40% domestic reductions in greenhouse gases and to rely firmly on the Emissions Trading Scheme (EU ETS) to deliver this objective. EURELECTRIC is particularly pleased to see the clear decision to consolidate the EU ETS mechanism through a strengthening of the annual factor to reduce the cap from 1.74% to 2.2% as of 2021 and with the additional endorsement of the ETS Market Stability Reserve proposal.
Reacting to this, EURELECTRIC President Johannes Teyssen said: “yesterday’s decision sets a clear greenhouse gases reduction target for all Member States and provides the necessary investment signal for low-carbon technologies. Of utmost importance is now a rapid reform of the EU ETS, as stipulated by the majority of Member States”. He added that it is of utmost importance to introduce the Market Stability Reserve from 2017.
Adding to this, EURELECTRIC Secretary General Hans ten Berge said: “European leaders yesterday created the conditions for moving to a low-carbon economy in a way that is not only environmentally but also economically sustainable. EURELECTRIC is pleased to see that the Heads of States and governments learned the lessons of the 2020 climate and energy framework and decided to deliver the energy efficiency and renewables targets through market-based, cost-efficient policies”. EURELECTRIC is particularly pleased with the clear references to the State aid guidelines, the need for a further strengthening of interconnections and the importance of further integrating renewables energy sources into the market.