The European Commission welcomes the provisional agreement reached with the European Parliament and Council to strengthen the EU Emissions Trading System (ETS), apply emissions trading to new sectors for effective economy-wide climate action, and establish a Social Climate Fund. This deal is a fundamental step towards reaching the EU's commitment to reduce net greenhouse gas emissions by at least 55% by 2030. At the same time the Social Climate Fund will help to ensure that the transition is fair.
Against the backdrop of Russia's invasion of Ukraine, this agreement shows once again the EU's determination to become climate neutral by 2050, transform our economy and society, leave nobody behind, and ensure our energy security. To complement the substantial spending on climate in the EU budget, Member States will spend the entirety of their emissions trading revenues on climate and energy-related projects and to address social aspects of the transition. (...)
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