Statkraft and Seven Energy Giants Urge EU to Preserve ETS Amid Competitiveness Crisis
Event summary
- Statkraft and seven other major European energy companies sent a joint letter to EU leaders on March 13, 2026, urging protection of the EU Emissions Trading System (ETS).
- The companies warn that dismantling the ETS could increase uncertainty and slow down critical power sector investments in Europe.
- The letter emphasizes the need for predictable policy frameworks to unlock massive investments for fossil-free, domestically produced electricity.
- The companies highlight that ETS revenues could support European industry through transition and electrification without additional pressure on public finances.
The big picture
The joint call from eight major European energy companies underscores the critical role of the EU ETS in guiding long-term investment into renewable power and flexibility. As Europe aims to reduce emissions by 90% by 2040, the preservation of well-functioning market mechanisms is essential to maintain competitiveness and security of supply. The letter highlights the need for efficient redistribution of ETS revenues to support industrial decarbonization without additional financial strain.
What we're watching
- Regulatory Stability
- How EU leaders will respond to the call to preserve the ETS amid growing pressure from industries facing competitiveness challenges.
- Investment Signals
- Whether the ETS can continue to provide clear and credible price signals for long-term investment in renewable power and flexibility.
- Industrial Decarbonization
- The pace at which the Industrial Decarbonisation Bank will be established and its impact on supporting European industry through transition.
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