The World Wildlife Fund (WWF) has said the EU can help accelerate decarbonisation by fining firms that knowingly pollute.
In its 52-page report, A Clean Industrial Revolution in Europe, the WWF claims there is very little time to avert the climate crisis turning into a climate catastrophe, and that embracing rapid and effective decarbonisation represents an opportunity for European industry to remain competitive around the world.
Currently, the WWF says the European Commission’s (EC) strategy is to financially support decarbonisation while allowing the scaling-up of green technology. According to the WWF, now is the right time to look closely at the highly-polluting sectors under the EU Emissions Trading System (ETS).
According to its own website, the ETS is based on a ‘cap and trade’ principle. The cap refers to the limit set on the total amount of greenhouse gases that can be emitted by installations and operators covered under the scope of the system. This cap is reduced annually in line with the EU’s climate target, ensuring that overall EU emissions decrease over time. By 2023, the EU ETS has helped bring down emissions from European power and industry plants by approximately 47%, compared to 2005 levels.
See also: DWS finds green shoots of optimism for European economy
Now, the WWF writes: “True competitiveness of EU industry lies in rapid decarbonisation, closing the innovation gap and scaling up green technologies, not in giving heavy industries a licence to pollute with impunity. Meanwhile, it is clear that substantial investments are needed to support the decarbonisation efforts of energy-intensive industries in Europe.”
It adds: “A larger Innovation Fund could support some of these investments in clean technologies. To enable this, carbon pricing instruments such as the ETS and CBAM will need to be properly implemented and strengthened over time.”
The WWF makes four policy recommendations for EU policymakers.
They are:
- Stop free emissions allowances from undermining industrial decarbonisation.
- Support effective climate policies and industry transformation through a better targeted Innovation fund.
- Implement a well-functioning and robust Carbon Border Adjustment Mechanism to push climate-friend technologies.
- Ensure any additional financial support to ETS sectors comes with binding climate and social conditions.
