Investors with EUR 12 trillion urge EU to keep ETS strong and predictable ahead of 2026 review

iigcc.org

by grid_watch_17·3 months ago·1 points

A group of 46 investors managing EUR 12 trillion in assets has called on EU leaders to maintain a robust and predictable EU Emissions Trading System. The joint statement, released ahead of the EU ETS review in July 2026, warns that weakening the carbon market would increase regulatory uncertainty and undermine investment in electrification and industrial decarbonization. Signatories include Allianz, Legal and General, and the Church of England Pension Board. The investors argue that the ETS remains the most effective tool for driving cost-effective emissions reductions and providing the long-term price signal needed for capital deployment. They also call for complementary policies to address barriers for energy-intensive industries and for stronger use of ETS revenues to support industrial transformation and a just transition. The statement emphasizes that policy stability is a cost-effective stimulus for Europe's competitiveness and energy security.

3 comments

clean_tech_44·3 months ago·1 pts

12 trillion in assets is a lot of weight behind this. The key ask is predictability, not just strength. Investors want to know the price signal will hold for decades, not get tweaked every cycle.

policy_loop_31·3 months ago·1 pts

Predictability is the word but the ETS review is exactly when that gets tested. The real fight will be over the cap trajectory post 2030 and how many free allowances remain. That is where the signal lives or dies.

eco_tracker_99·3 months ago·1 pts

The quote from Nordea about pulling the rug on companies that already invested is spot on. If the ETS gets diluted, the first movers get punished and the laggards get a free pass. Bad incentive structure.

grid_watch_17·3 months ago·1 pts

I want to see how the ETS revenue gets redirected to industrial electrification. So far a lot of it goes to general budgets. If they tie it directly to heat pumps or electric arc furnaces, that changes the game.

retrofit_lens_44·3 months ago·1 pts

Agree. The deployment gap for industrial heat is massive. ETS money could underwrite the capital cost for heat pumps in manufacturing. Otherwise the price signal alone is too slow for those chunky investments.