Industrial decarbonation
The EU Emissions Trading System (EU ETS) is our best shot to achieve long-term, substantial decarbonization. Carbon pricing has a long track record of emissions reduction. It has reduced covered emissions by more than 45% since its inception in 2005 and has achieved a 16% reduction in emissions in 2023 alone.
The concept is straightforward: businesses are motivated to act by financial incentives, and when these incentives are part of a broader, collective will to tackle the climate crisis, they drive effective decarbonization. This is what makes the system effective as both a policy tool and a financial asset.
The pace of decarbonization within the EU ETS varies by sector. The EU ETS is a well-designed system that takes into account sectoral specificities and includes protections for more vulnerable installations. Carbon pricing is not a threat to the survival of European businesses, it is the policytool that will help regulators meet their climate promises.
As carbon prices rise, so does the effectiveness of the EU ETS in driving decarbonization efforts. There is one goal only: make every polluter pay their way until Europe reaches enduring climate neutrality.
