A strong reform of the EU Emissions Trading System (ETS) is needed in order to rapidly reduce emissions from the goods and services Europe produces. Supporting clean technologies and innovation through the Innovation Fund is crucial to ensure the necessary tools to decarbonise, such as hydrogen, next-generation renewables, carbon capture and storage, and carbon removal, are available. We, the undersigned, are concerned with the provisional agreement on RePower EU, which would enable Member States to use grants financed by the Innovation Fund (60%) and front-loading ETS allowances (40%). This will weaken and reduce the size of the Innovation Fund in order to raise revenues for RePowerEU at a time when an overall increase in funding would on the contrary be more needed than ever.
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