Press Release: European Emissions Trading/ Compromise: Emission reduction by industry – need for improvement of the Climate Social Fund

On the occasion of the outcome of the negotiations on the reform of the EU Emissions Trading Scheme and the Social Climate Fund, Henrike Hahn, Member of the European Parliament (Greens/EFA), Deputy speaker of the German Delegation, Industrial Policy Spokesperson of the European Group, Rapporteur of the opinion on the Social Climate Fund in the Committee on Economic and Monetary Affairs, comments:

"The agreement will help to reduce industry emissions and help to end free pollution. Polluters will be held accountable and a shift to green industry will pay off at the same time.

It is encouraging that the auctioning of 591 million CO2 Emission certificates will increase the EU Innovation Fund.

Among other things, this fund shall support the rapid green transformation of the EU industry with support of climate protection contracts, so-called "Carbon Contracts for Difference" (CCfDs).

I have already called for the use of CCfDs in the update of the EU industrial strategy, which can make a decisive contribution to the sustainable competitiveness of EU industry. Especially in times of skyrocketing energy prices and the Inflation Reduction Act incentives and very concrete support to strengthen a sustainable EU industry are very important.

The EU - Climate Social Fund will enter into force in 2026 - this is per se good news. It will enter into force one year before ETS2 and is designed to fight energy and mobility poverty in Europe. However, the round about 88 billion euros for the Climate Social Fund are about 40% less than the European Commission has demanded.

Climate protection must always be implemented in a socially just way. It is disappointing that some member states have not recognized the urgency of an ambitious Climate Social Fund. Higher C02 prices will be felt by the people of Europe and climate policy in Europe must go hand in hand with sufficient funding and a strong social policy - there is still plenty of room for improvement.

The way to fight energy and mobility poverty in Europe is long and the current agreement on the Climate Social Fund can only be the beginning."

Please do not hesitate to contact me if you have any further questions.

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