The ETS System requires optimization to guarantee a meaningful carbon price signal

The Union Française de l’Electricité (UFE) reiterates its support for the ETS mechanism, which still represents the most suitable solution for successfully making the transition to a low carbon economy for Europe.

Electricity industry professionals, however, are concerned about current CO2 price levels on the European market, which are failing to send adequate price signals to stimulate industrial investments in low carbon technologies.

This situation merits an urgent response, which should take the form of a change to the existing architecture of the ETS mechanism, in line with ambitious long term targets for reducing CO2 emissions.