Decarbonising European industry: Enabling carbon capture and storage through the EU ETS
CATF strongly supports the EU’s ambition to become climate neutral by 2050, and welcomes the revision of the Emissions Trading System (ETS) Directive to ensure compatibility with the EU’s climate ambition. The EU ETS revision should focus on reducing emissions from Europe’s industries by placing a significant price on pollution. This will help to decarbonise Europe’s industrial sector by enabling the deployment of technologies like carbon capture and storage, necessary for climate neutrality.
CATF has prepared a fact sheet outlining the importance of the ETS for developing technologies like carbon capture and storage. Carbon capture and storage is an essential technology which Europe’s industry will need to decarbonise and also ensure its long term survival. However, carbon capture and storage development lacks the funding needed and the ETS can bridge this gap. CATF therefore strongly recommends:
- The faster phase-out of free allowances for industrial sectors
- Expand the Innovation Fund and focus on hard-to-abate sectors
- Enable the Commission to use Carbon Contracts for Difference