EU ETS pragmatism: investors signal support as parliamentary debates begin

Responsible Investor reports that major investors are signaling support for a pragmatic approach to the EU Emissions Trading System as parliamentary debates get underway. The message is that the ETS needs to remain credible but also workable for industry, which suggests some flexibility may be acceptable in the next phase of reforms. Stakes are high for carbon markets, energy projects, and industrial decarbonization. A softer ETS could lower carbon prices in the near term, which would reduce revenue for clean energy and slow efficiency investments. Investors and policymakers will need to balance the speed of the transition against the political cost of pushing too hard.