The Environment Council debated the reform of the EU Emissions Trading System (EU ETS) Directive on June 20th, 2016. The EU ETS, a central pillar of the EU’s climate policy, is a key tool for achieving the EU’s decarbonisation targets and for enabling the block’s contribution to pursuing a 1.5˚C limit endorsed in the Paris Agreement. The system, intended to provide a predictable, meaningful and robust carbon price, would have been a key long-term driver for critical low-carbon technologies such as Carbon Capture and Storage (CCS). However, due to the currently low carbon price, additional funding support measures for CCS are vital to spur the deployment of CCS in power and industrial sectors. The Innovation and Modernisation funds under the EU ETS are absolutely key to the development of CCS projects and corresponding transport and storage infrastructure.