Asked for our views by Commission DG Internal Market, Industry, Entrepreneurship and SMEs, EPF responded that phasing out of fossil fuels is crucial in the building sector and the ETS is a technology-neutral and quick way to get there. The strength of the ETS is that it is market-based and that will be the cheapest way to reduce emissions. The ETS would also be a good tool to ensure acceptability of climate policy and let politicians focus on what they do best: distributing subsidies to citizens. We recognise that a comprehensive ETS could make GHG reduction targets easier to achieve. In the building sector, this extension could also provide a consistent carbon price signal, helping to incentivise emissions reduction.

Full EPF Secretariat report under epf21-25 of 20.04.2021