IOGP Europe position on the revision of the EU ETS 1

IOGP Europe welcomes the opportunity to contribute to the European Commission’s public consultation on the revision of the EU Emissions Trading System (EU ETS). As the central pillar of EU climate policy, the ETS must continue to deliver a robust, cost-effective, and innovation-oriented framework capable of enabling both emissions reductions and industrial transformation. In addition to responding to the online questionnaire, IOGP Europe developed this paper to provide more details on key issues, including those that may not have been fully addressed in the consultation format.

The key messages are as follows:

1.Integration of carbon removals under the EU ETS framework

• Permanent CRCF-certified carbon dioxide removals should be directly integrated into the EU ETS, with no quantitative cap.
• Temporary carbon dioxide removals may play a transitional role, with a progressively declining cap to ensure a shift toward permanent solutions.
• International carbon removals credits, aligned with CRCF and Article 6 of the Paris Agreement, should be eligible to support global interoperability and EU climate leadership.

2. Industrial Decarbonisation Bank

• IDB’s mandate and structure must be clearly defined, and technology-neutral.
• Measures for de-risking demand creation as a first step are welcomed, but they should be paired with concrete market creation mechanisms to stimulate predictable demand for decarbonization outputs.
• The IDB must complement, not duplicate, existing EU instruments like the Innovation Fund and help mobilize private capital at scale.

3. Interlinkages with other systems

• Linking the EU ETS with systems like the UK ETS improves market efficiency, liquidity, and price stability.
• Harmonized carbon pricing reduces regulatory complexity and protects industrial competitiveness across borders.
• The EU should continue enabling international cooperation on ETS linkages to ensure market-based instruments as a driver for GHG emissions reductions.

For more detailed information download the position statement and the questionnaire.