Joint letter – ICC reform and expansion risks diverting ETS Revenues from real climate action
In light of the European Commission’s ongoing considerations to amend the ETS State Aid Guidelines, revising the rules for Indirec...
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Publish date: February 24, 2025
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As drafts continue to circulate, we will update the article. See Bellona’s initial assessments:
The Clean Industrial Deal (CID) represents a significant and commendable effort to tackle the challenges facing European energy-intensive industries today: unfair global competition and the urgent need for rapid decarbonisation. We welcome its additional focus on scaling up the clean-tech sector, recognising that clean/low-carbon technologies are not only key enablers of industrial decarbonisation but also essential pillars of Europe’s net-zero economy.
The CID recognises that the Green Deal objectives are European assets to be actively leveraged rather than a burden to bear. However, to ensure the CID is truly effective in achieving its goals, certain aspects require further refinement. We outline key recommendations to strengthen its impact and deliver the necessary support for a competitive and decarbonised European industrial base, see this document for Bellona Europa’s full analysis:
Referencing the launch of the Clean Industrial Deal, the accompanying CISAF sets out how Member States can design state aid measures to support its objectives. While Bellona Europa strongly supports the dedicated state aid measures supporting the implementation of the Clean Industrial Deal, we warn that guidelines for aid must be fit-for-purpose. There are still uncertainties and gaps in the current draft in need of revising to ensure effective state aid reaching the aims of the CID, and safeguarding its climate integrity,
Specifically, Bellona Europa’s comments focus on how to best safeguard the proposed aid’s positive impact on climate change mitigation. This includes, but is not limited to, reviewing the necessity of thresholds proposed, the clear separation of CCS and CCU activity and in determining their climate impact, and added clarity throughout the document to strengthen its long-term durability. Bellona Europa outlines its recommendations in this document:
The leaked Action Plan for Affordable Energy recognises that the decarbonisation of the energy system is one of the main enablers for driving down energy cost and includes positive measures, for example, to ensure availability of resources for the necessary grid deployment. Still, Bellona notes that some improvements could be made, including for instance the consideration of losses of hydrogen production in the context of energy efficiency measures. You can find more information on Bellona’s asks here:
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