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UFE response to the european commission consultation (...)

UFE believes that the European allowances market is an effective tool to promote greenhouse gases emissions reductions from industrial sectors, and to facilitate the transition towards a low carbon economy at the lowest cost.

The ETS also determines a single carbon price signal at the European level, which is of fundamental importance. The electricity industry, however, considers essential the predictability of emissions reductions targets over the long term. As a matter of fact, the CO2 price as determined by the ETS is currently low. Market operators are not receiving the price signals they need in order to plan their investments in low carbon technologies.

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