Statkraft And Seven Major EU Power Companies Urge Brussels To Protect EU ETS And Speed Up Europe’s Clean-Energy Transition

Statkraft, Europe’s largest renewable energy producer, has joined seven other major European power companies to urge EU leaders to strengthen Europe’s competitiveness by protecting key energy policies. Together, the companies are calling on the European Union to safeguard the EU Emissions Trading System (EU ETS), maintain the internal electricity market with its marginal pricing model, and speed up the continent’s decarbonisation efforts.

This joint appeal was made through a letter addressed to European Commission President Ursula von der Leyen and European Council President António Costa. In the letter, Statkraft, along with Fortum, Vattenfall, Iberdrola, EDP, Ørsted, EDF and Engie, warns against weakening or dismantling European market mechanisms that have been functioning well for years. These mechanisms play an essential role in supporting investment, maintaining security of supply, and ensuring affordable energy prices across the region.

Birgitte Ringstad Vartdal, President and CEO of Statkraft, emphasized that undermining the EU ETS would not help Europe address its competitiveness issues. Instead, it would create uncertainty and slow down the critical investments required within the power sector. She noted that the EU has already committed to reducing emissions by 90 percent by 2040, and the EU ETS provides a stable and credible price signal for long-term investments in renewable energy, energy flexibility, and electrification. According to her, the EU ETS remains a core pillar of Europe’s strategy to reach net-zero emissions.

The companies also highlight that Europe is at a decisive moment. The region must move faster in its energy transition and innovation efforts if it hopes to close the growing competitiveness gap. Without this, Europe risks losing the progress it has made over several decades in modernising its energy and industrial landscape. They stress that predictable and stable policy frameworks are crucial for attracting the massive levels of investment required to produce large-scale, fossil-free electricity within Europe. At the same time, several parts of European industry are under increasing pressure, dealing with significant uncertainty that threatens their global competitiveness. In this context, reliable and reasonably priced electricity is seen as an essential part of the solution.

Vartdal also pointed out that Europe’s integrated electricity market has consistently delivered lower costs, better efficiency and stronger security of supply. The marginal pricing model helps ensure electricity is produced and used at the lowest possible cost while giving clear signals for investment in new energy capacity and flexible systems. She warned that fragmenting or altering this market structure could lead to higher costs for consumers and weaken Europe’s competitive position in global markets.

The letter further explains that revenues from the EU ETS present a major opportunity to support European industries in their transition toward cleaner energy and electrification, without placing extra strain on public budgets. The companies encourage EU leaders to make better use of these revenues and to move quickly in establishing the Industrial Decarbonisation Bank that was proposed under the Clean Industrial Deal. Overall, the message from Statkraft and the other power companies is clear: Europe must protect its existing energy market foundations, accelerate its clean-energy transition, and provide a predictable policy environment to maintain competitiveness and secure its long-term energy future.