The International Emissions Trading Association (IETA) released a vision paper calling for the EU to keep its Emissions Trading System (ETS) rule-based and free from political interference after 2030. The paper urges a swift EU-UK carbon market link to reduce carbon leakage and competitiveness risks, and supports integrating international credits and carbon removals into compliance systems. IETA warns that a shrinking cap and rising prices will increase pressure for ad-hoc political interventions, and argues the Market Stability Reserve should become a predictable mechanism for tighter supply conditions. IETA also backs expanding ETS scope to include waste incineration, rail, inland waterways, and agricultural fuels, and supports exploring a merger of ETS1 and ETS2. On removals, the paper says voluntary demand alone cannot scale engineered and nature-based solutions enough to meet EU 2040 and 2050 targets. The EU ETS has generated over 245 billion euros in auction revenues since launch, covering power, heat, and industry. IETA urges the Commission to start preparatory work on international credit pilots from 2031.
