Eurogas Position Paper on Carbon Pricing

Eurogas is committed to achieving the objectives of the Paris Agreement and supports the Commission’s long-term vision of a carbon neutral economy by 2050. To foster decarbonisation, specific enabling conditions are required. A strengthened carbon pricing will be primary to advancing zero and low carbon technologies across all sectors. Eurogas supports the extension of carbon pricing through a well-designed market-based system to current non-ETS sectors of buildings and transportation. The long-term goal should be their inclusion into the EU ETS. As an example, Germany has implemented carbon pricing for these sectors, with the future goal of integrating it into the EU ETS. Nevertheless, Eurogas recognises that different sectors have different avoidance costs and their immediate inclusion into the existing ETS without intermediary steps could initially risk increasing pressure on current ETS sectors.