Etica Sgr, together with a group of international institutional investors, has supported an Investor Statement on the EU ETS (European Emissions Trading System), the EU’s main instrument for reducing greenhouse gas emissions in energy-intensive and industrial sectors.
The document, promoted by the PRI and IIGCC networks, highlights the crucial role of a stable, credible and ambitious ETS in ensuring effective carbon price signals, incentivizing decarbonization investments, and supporting the achievement of the European Union’s climate targets.
In particular, the statement outlines several key points:
- The importance of a predictable and robust carbon price, capable of guiding long-term investment decisions
- The need to avoid excessive volatility, which could weaken the system’s effectiveness
- Alignment with the EU’s 2030 and 2050 climate targets, including climate neutrality
- Integration with other EU’s policy instruments, such as the Carbon Border Adjustment Mechanism (CBAM), to ensure fairness and competitiveness
The document reiterates that a well-functioning ETS is essential for channeling capital toward low-emission technologies and for reducing the risk of stranded assets in investors’ portfolios.
For a responsible investor such as Etica Sgr, strengthening the EU ETS represents a strategic priority across several dimensions:
- Climate risk management: an effective carbon price makes it easier to assess transition risks associated with companies with higher emissions exposure
- Capital allocation: a credible ETS supports investments in sectors and companies aligned with climate goals, in line with ESG policies
- Stewardship: the statement provides a basis for engagement with portfolio companies on decarbonization strategies and climate governance
- Alignment with sustainability objectives: it helps support a regulatory framework that accelerates the transition to a low-emission economy
Aldo Bonati, Etica Sgr Stewardship & ESG Networks Manager
«Investors’ advocacy in the debate on the development of the EU ETS strengthens their role as active players in the ecological transition, in line with the principles of sustainable and responsible investment.»
Cristina Colombo, Etica Sgr Stewardship and
Climate Specialist
«A robust EU ETS is essential for incorporating the cost of emissions into financial markets and guiding businesses and capital towards net zero.»
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