- EU aims to cut emissions by 90% by 2040.
- EU ETS provides a price signal for renewable investment.
- Predictable policies are needed for fossil-free electricity.
- ETS revenues can support industrial transition.
Call to EU Leaders
Statkraft and seven other major European power companies have urged EU leaders to reinforce Europe's competitiveness by safeguarding the EU Emissions Trading System (EU ETS), preserving the internal electricity market, and accelerating decarbonization.
Importance of EU ETS
The companies warn against dismantling market mechanisms that support investment, energy security, and affordability. They emphasize that weakening the EU ETS could increase uncertainty and slow down necessary power sector investments.
Energy Transition and Competitiveness
Europe faces a critical choice: accelerate energy transition and innovation to close the competitiveness gap or risk undermining progress in energy and industrial transformation. Predictable policy frameworks are essential for unlocking investments in fossil-free, domestically produced electricity.
Market Efficiency and Investment
Europe's integrated electricity market has delivered lower costs, higher efficiency, and greater security of supply. Marginal pricing ensures electricity is produced and consumed at the lowest cost, providing investment signals for new generation and flexibility.
Utilizing ETS Revenues
ETS revenues offer an opportunity to support European industry through transition and electrification without additional public financial pressure. The companies encourage efficient redistribution of ETS revenues and the swift establishment of the Industrial Decarbonisation Bank.
