<p><span>Carbon Contracts for Difference (CCfDs) have been broadly discussed as a potential instrument to support energy-intensive industries in developing and deploying low-carbon technologies. In its New Industrial Strategy, the Commission recently stated its interest in a European approach for CCfDs in the context of the upcoming revision of the EU ETS Directive.</span><a href="https://www.europex.org/position-papers/carbon-contracts-for-difference/#_ftn1">[1]</a><span> Against this background, Europex would like to draw attention to the potential unintended distortive effects that such a mechanism may cause to the European emissions market and advise that a thorough impact assessment is needed before determining whether or not to introduce CCfDs into the EU ETS.</span></p>