Free allocation in the EU ETS among the EU policies inconsistent with climate goals
The measure is included by WWF in the “Hall of Shame” of EU’s worst climate policies
23 October 2023
WWF released on Monday the “Hall of Shame” of EU’s policies which are inconsistent with the bloc’s climate ambitions. The publication comes just a few days ahead of the European Commission’s own five-yearly assessment of progress towards climate neutrality which is expected this Wednesday.
Among other European policies, the “Hall of Shame” listed the inclusion of nuclear power and gas in the EU taxonomy rules and the allocation of free allowances to heavy industry under the EU ETS.
In a controversial move last year, the EU labeled investments in gas and nuclear plants as sustainable. The decision was received with criticism with several environmental groups, including WWF, taking legal action against it.
According to WWF, the measure “is encouraging investment in new fossil gas-fired and nuclear plants. This in turn is diverting available financial resources from technologies which are genuinely low carbon and/or provide cheaper and faster means of cutting emissions.”
Another policy labeled as “inconsistent with EU climate goals” is keeping free allocation for heavy industry worth around €460 billion between 2021-2030. The measure is “a failure to apply the polluter pays principle that has resulted in little to no change in industry emissions,” argue WWF.



