Earmarking ETS revenues to deliver clean industrial competitiveness

The letter argues that current public funding is insufficient to bridge a €620 billion annual investment gap needed for the Green Deal and REPowerEU. It recommends that all ETS revenues be allocated to climate action, specifically prioritising the development of a competitive clean industry. The authors call for the redirection of the 25% of revenues currently allowed for indirect carbon cost compensation toward scaling strategic clean technologies, noting that €92 billion is needed by 2030 for just six such technologies. Finally, it demands transparent reporting of ETS revenue allocations to ensure accountability and allow for scrutiny by the European Commission and civil society.

• There is a significant annual investment gap of €620 billion in both public and private funding required to achieve the goals of REPowerEU and the Green Deal, according to a 2023 Strategic Foresight Report from the European Commission.
• The authors advocate for the total allocation of ETS revenues to climate action, with a priority on strategic clean technologies and the creation of a competitive clean industry. They suggest that these allocations be judged based on climate impact, system effects, timing, the 'Do No Significant Harm' (DNSH) principle, and economic efficiency.
• The letter proposes that the 25% of ETS revenues currently permitted for the compensation of indirect carbon costs under article 10a(6) of the ETS Directive should instead be invested in scaling clean technology manufacturing. This is supported by Commission estimates that €92 billion is required by 2030 for six strategic clean technologies.
• The document highlights a lack of accountability in how Member States report ETS spending, noting that €11 billion was not spent on climate-related actions in 2022 alone, and calls for transparent, project-specific reporting.

APA

Clean Air Task Force (2024). Earmarking ETS revenues to deliver clean industrial competitiveness. https://cdn.catf.us/wp-content/uploads/2024/10/09173425/joint-letter-eu-ets-revenues.pdf

Chicago

Clean Air Task Force. Earmarking ETS revenues to deliver clean industrial competitiveness. 2024. https://cdn.catf.us/wp-content/uploads/2024/10/09173425/joint-letter-eu-ets-revenues.pdf.

Wikipedia

{{cite press release |author=Clean Air Task Force |title=Earmarking ETS revenues to deliver clean industrial competitiveness |date=8 October 2024 |url=https://cdn.catf.us/wp-content/uploads/2024/10/09173425/joint-letter-eu-ets-revenues.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{cleanairtaskforce2024earmarking, author = {{Clean Air Task Force}}, title = {{Earmarking ETS revenues to deliver clean industrial competitiveness}}, publisher = {Clean Air Task Force}, year = {2024}, month = oct, url = {https://cdn.catf.us/wp-content/uploads/2024/10/09173425/joint-letter-eu-ets-revenues.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }