Recital (13)

A number of elements to facilitate the achievement of the 2040 climate target should be appropriately reflected in those legislative proposals, including: an adequate contribution towards the 2040 climate target of high-quality international credits under Article 6 of the Paris Agreement from 2036 to 2040, in a way that is both ambitious and cost-efficient and in line with the accounting rules of the Paris Agreement, including a pilot period to initiate a high-quality and high-integrity international credit market from 2031 to 2035; the role of domestic permanent removals (such as biogenic emissions capture with carbon storage (BioCCS) and direct air capture with carbon storage (DACCS)) in the EU ETS, while ensuring the environmental integrity of the EU ETS, including the possibility to store CO2 outside the Union, as appropriate, subject to the existence of international agreements and providing for conditions equivalent to those laid down in Union law; and enhanced and accessible flexibility across and within sectors and instruments to support a cost-effective approach whereby, for example, Member States’ achievements in one sector can balance gaps in other sectors in a cost-efficient way while ensuring that each sector contributes to the efforts, and ensuring that possible shortfalls in one sector would not be at the expense of other economic sectors, without prejudice to each Member State’s possibility to make use of the flexibilities. In operationalising the use of international credits, the Commission should take into account the need to ensure a level playing field across Member States and the opportunity to support strategic Union partnerships in line with the interests of the Union. The current EU ETS trajectory should be revised in the upcoming review of Directive 2003/87/EC to take into account the agreed 2040 target in a manner that would allow for a limited amount of emissions after 2039. The Commission should consider in a timely manner a slower phase-out pathway for free allocation of allowances from 2028 onwards to support decarbonisation, investment and employment in the Union, including through an industrial decarbonisation bank and a review of the market stability reserve, while minimising the risk of carbon leakage. In order to assess the social, economic and environmental impacts, the post-2030 framework should be based on robust impact assessments. The post-2030 framework should also foster convergence while taking into account fairness and Member States’ national circumstances and specificities, including those of islands, island Member States and outermost regions.