Strategic spending: how the EU Emissions Trading System can fund fair climate action
According to EU Member States’ reporting, of the €13.9 billion total ETS revenues in 2018, one-third - €4.6 billion - was not spent on climate actions like insulating homes or installing renewable energy. What’s more, emissions allowances worth €11 billion were given out to polluters for free. This makes almost €16 billion of missed money for climate action last year.
For an effective ETS for the climate, WWF makes six recommendations:
- Improve Member State reporting on how they spend their revenues
- Agree that Member States must spend 100% of revenues on climate action, and ensure climate spending is additional to state climate spending
- End free allocation of allowances
- Exclude fossil fuel investment from ETS revenue spending
- Remove excess ETS allowances from the market for good, and lower the cap
- Introduce sustainability and climate proofing rules to ETS climate spending
See WWF's analysis (full report)
See WWF’s asks on the Just Transition fund
Nb: Data on ETS revenue use sourced from The European Environment Agency's EIONET Central Data Repository and EU Emissions Trading System (ETS) data viewer