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Addendum to the Response to Public Consultation: 2030 Climate Target Plan

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This Addendum Paper sets out the EuroACE interim position on the topics of section 5.3 of the Commission Public Consultation on the 2030 Climate Target Plan, i.e. questions related to the proposal to extend the EU Emissions Trading System (EU ETS) to the building sector.


The ETS was established to create a market mechanism to achieve high reductions in carbon emissions from energy intensive industries. It relies on a system of credits with a monetary value that are traded in an open carbon market among designated parties. For the market to be successful, strict surveillance is necessary and strict compliance with the rules of the ETS from all designated parties is essential. The ETS has had the desired effect of reducing carbon emissions, but only after many years of difficulties and low prices.


When the European Commission started its new mandate in 2019, a proposal was made in the framework of the EU Green Deal, to extend the ETS to the buildings sector, without any detail on the exact proposal. The Commission published in March 2020 its proposal for a Climate Law to enshrine into legislation the objective of reaching climate neutrality by 2050. In that context, it also committed to assess the possibility of increasing the 2030 GHG emissions reduction target from 40% to at least 50% and possibly 55%. It is in that framework that the Commission now investigates whether an extension of the ETS to the building sector is a good idea.


Read the full publication in the attachment.