NN N : Group joins investors backing stronger EU carbon market

NN Group has joined a coalition of global investors calling on EU leaders to protect Europe's carbon market.

The group warns that weakening it could harm Europe's economy at a critical time. In a joint statement ahead of key EU decisions this summer, the investors stress that a strong and predictable EU Emissions Trading System (ETS) is essential for investment, competitiveness and energy security.

From our perspective as a long-term investor, the message is simple: stability drives investment. Furthermore, stable and robust climate policies are important to incentivise a timely and orderly transition of the economy, which is crucial for us to achieve our climate ambitions.

The ETS has already delivered results. Emissions from covered sectors have fallen by around 50% since 2005. The system has also supported the shift from coal to renewable energy and strengthened energy security. A clear and reliable carbon price helps guide decisions across energy, infrastructure and industry.

At the same time, we recognise the pressure on European industry. Energy costs remain high, and some sectors face more complex and costly transitions. These challenges are real. But they should be addressed with targeted support, stronger infrastructure and innovation - not by weakening the ETS. Doing so would reduce investor confidence and risk slowing Europe's progress in the global race for clean investment.

With an ETS review coming up and EU leaders meeting this month, NN Group and other signatories are calling for a consistent approach. The priority should be to build on what works - by strengthening the system and making better use of ETS revenues to support industrial decarbonisation and the energy transition.

In uncertain times, a stable and predictable carbon market is not a barrier to growth, but a key part of Europe's economic future.

You can find more information about NN Group's climate approach here.