Central Europe Energy Partners welcomes the possibility to provide feedback to the Commission’s Inception Impact Assessment on the revision of the ETS. CEEP believes that the following adjustments to the ETS system could benefit all countries in Central Europe:
- Increased size of the Modernisation Fund as the current system will not ensure the modernization of the sector needed and will question the feasibility of many investments;
- or/and an alternative, complementary option of creating a new fund based on energy poverty indicators which aims at subsidizing people affected by the rise in ETS permit prices;
- change to the allowance allocation key to ensure a more balanced distribution;
- an update of the reference period to 2016-2018; the use of 2005 or 2005-2007 periods have become outdated, especially within the context of two global economic crises. This does not illustrate reality and lack credibility with regards to current and future emission reduction efforts.
This does not illustrate reality and lack credibility with regards to current and future emission reduction efforts. These instruments and adjustments could allow for a more balanced ETS system, limit the risks for most vulnerable energy consumers, and enable a smoother transition for the Central European economies.
Read the full response to the European Commission’s consultation here.