Statkraft joins leading power companies in call to safeguard EU ETS and strengthen Europe’s competitiveness

Core Viewpoint - Eight major European energy companies, including Statkraft, are urging EU leaders to protect existing market mechanisms and accelerate the clean energy transition to enhance Europe's competitiveness [1][2]. Group 1: Market Mechanisms and Competitiveness - The companies warn against dismantling effective market mechanisms that support investment, security of supply, and affordable energy across Europe [2]. - Weakening the EU Emissions Trading System (EU ETS) could increase uncertainty and hinder necessary investments in the power sector, which is crucial for achieving the EU's goal of reducing emissions by 90% by 2040 [3]. - The EU ETS provides a clear price signal that guides long-term investments in renewable energy, flexibility, and electrification, serving as the backbone of Europe's net zero strategy [3]. Group 2: Energy Transition and Policy Frameworks - Europe is at a critical juncture where it must either accelerate the energy transition and innovation or risk undermining decades of progress in energy and industrial transformation [4]. - Predictable policy frameworks are essential to unlock significant investments needed for fossil-free, domestically produced electricity at scale [4]. - Access to sufficient and affordable electricity is central to addressing the competitiveness challenges faced by parts of the European industry [4]. Group 3: Integrated Electricity Market - Europe's integrated electricity market has resulted in lower costs, higher efficiency, and greater security of supply [5]. - Marginal pricing ensures electricity is produced and consumed at the lowest possible cost while providing investment signals for new generation and flexibility [5]. - Fragmentation of the market would lead to higher costs for consumers and weaken Europe's global competitiveness [5]. Group 4: ETS Revenues and Industrial Support - The letter emphasizes that ETS revenues present a significant opportunity to support European industry during the transition and electrification without adding pressure on public finances [6]. - The companies encourage EU leaders to facilitate efficient redistribution of ETS revenues and to quickly establish the Industrial Decarbonisation Bank as part of the Clean Industrial Deal [6].