ETS

Energy Cities, Counter Balance, CEE Bankwatch Network and Change Partnership see the ongoing revision of the European ETS as a crucial opportunity to support the EU in meeting its 2030 climate targets, deliver on the Paris agreement and accelerate the locally driven energy transition. We welcome the proposal to establish an ETS (Emission Trading System) Modernisation Fund for low-income Member States.

The so called Article 10c of the EU ETS Directive allows lower-income Member States from central and eastern Europe to give allowances for free to electricity installations under the condition that they invest at least the equivalent monetary value of the free allowances in the modernisation and diversification of their energy systems. This briefing contains a detailed review of the experience so far and offers recommendations for the post 2020-period.

Within the framework of the EU’s 2030 climate and energy policies, the Modernisation Fund aims to support lower-income Member States in meeting their investment needs related to energy efficiency, including financing small-scale investments projects and the modernisation of energy systems. Based on experience with funding mechanisms at the European Investment Bank, the European Commission and the EU budget, this briefing recommends several structural elements for the establishment of the Fund.