Indirect Cost Compensation reform risks diverting Emissions Trading Scheme revenues from climate action
Signatories express concern over the European Commission's ongoing considerations to amend the ETS State Aid guidelines.
To unlock the full potential of ETS revenues and help achieve the EU’s climate goals, the European Commission should:
- Refrain from the expansion of eligible sectors under the Guidelines, at least until the current system of ICC has been adequately reformed.
- Update CO₂ emission factors to reflect the average annual marginal emission intensity of the price-setting generation units in the bidding zone, based on real market data rather than the average of all fossil power plants.
Read more in our joint letter.
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