The European Banking Federation (EBF) has issued a public statement emphasising that a predictable and strong EU Emissions Trading System (ETS) is essential for mobilising private capital and achieving Europe’s climate ambitions.
The trade association, which represents national banking associations across Europe, warned that policy measures that compromise the consistency of the carbon market risk inflating financing costs for the green transition and delaying the deployment of clean technologies.
Private capital mobilisation and policy certainty
The EBF highlighted that the mobilisation of private capital is directly linked to regulatory certainty. Stable policies are considered vital to mitigate investment risks, prevent market speculation, and improve the overall risk profiles of green initiatives, which subsequently lowers project costs and enhances bankability.
According to the statement, market participants form their long-term investment expectations based on the policy trajectory of the ETS beyond 2030. Consequently, the federation argued that any interventions capable of weakening the carbon price signal must be avoided to keep clean technology competitive.
preserving the integrity of the EU ETS
The banking body stated that maintaining market confidence and protecting the integrity of the EU ETS must remain a primary focus for European Union policymakers. A credible carbon price signal is described as indispensable not only for delivering statutory climate targets but also for strengthening regional energy independence and driving long-term industrial innovation.
The statement concludes by reaffirming the EBF’s commitment to supporting a secure and inclusive financial ecosystem capable of funding sustainable business transitions, provided the regulatory framework remains stable and transparent.
