Emissions trading scheme

Energy 13-01-2022

Germany leads Europe with target to reach 100% clean power by 2035

Germany’s surprise commitment to decarbonise its electricity by 2035 is a sign of things to come, writes Charles Moore. It is only a matter of time before more countries join Germany, the UK, the US, and Canada, which have set their sights on 100% clean power, he argues.
03-01-2022

PM Morawiecki: The EU ETS system driven by speculators must be reformed

The current concept of the EU Emissions Trading Scheme (EU ETS) is flawed. Instead of serving a sustainable and equitable climate policy, CO2 emissions trading has become a tool for speculation, writes Mateusz Morawiecki.
24-12-2021

How to make the EU’s carbon border tax effective and fair

As the EU steps up its efforts to introduce a Carbon Border Adjustment Mechanism, it’s crucial that policymakers design the CBAM to support deep emission reductions while safeguarding the rights of less-privileged countries to develop, writes Agnese Ruggiero.
05-08-2021

Carbon pricing in buildings and transport is necessary but must be done well

Without pricing CO2 emissions from buildings and transport, Europe will miss its -55% emissions target, but it must be introduced bearing in mind the political and societal risks, particularly in countries like Poland, writes Joanna Maćkowiak-Pandera.

EU climate targets are undermined by ETS subsidies. They must end

Some industry groups have called to maintain free CO2 allowances in addition to the upcoming carbon border levy. Their addiction to subsidies must be brought to an end, otherwise Europe risks triggering a trade war that would also undermine the EU's climate leadership, write Connie Hedegaard and Pascal Lamy.
09-07-2021

A carbon price on buildings and transport could come at a heavy cost

Plans to extend the EU's carbon market to transport and heating fuels will have the greatest impact on the poorest households, writes Piotr Arak.

How to make a success of the EU carbon border adjustment

The EU has clearly fallen short in communicating its upcoming carbon border levy abroad, including on how it intends to use the revenues raised by it. Fortunately, it still has time to fix these shortcomings, write Anne Gläser and Oldag Caspar.
01-07-2021

ETS extension: when in doubt, create a fund

Geeky, technical work on how to create a carbon price for buildings and road transport that incentivises change without being too high is key to the extension of the emissions trading scheme, writes Brook Riley.
Energy 22-06-2021

Why a carbon tax is the most effective price signal for the building sector

A carbon tax on the fuel used to heat Europe's buildings is the most effective price signal to decarbonise Europe's building stock, which is in desperate need of renovation to meet the EU's climate ambition, writes Oliver Rapf.
14-06-2021

An ETS for transport and buildings is essential

An EU-wide emissions trading system for the transport and building sectors would secure the financing of low carbon solutions and support lower-income households and member states through the redistribution of carbon pricing revenues, argue Matthias Buck and Andreas Graf.

Fit and fair: The case for a European fund for targeted renovation

The European Commission's commitment to create a "climate social fund" is very welcome but its design will be crucial if it is going to have an impact on building renovation, write Louise Sunderland and Samuel Thomas.

Is anyone able to control the carbon price?

Carbon prices on the EU emissions trading scheme are currently rising too fast, making the market extremely volatile, but it seems the European Commission has no effective stabilising tool to tackle this, writes Robert Jeszke and Sebastian Lizak.
25-05-2021

Von der Leyen’s ETS extension to buildings and transport would do more harm than good

As European leaders meet today to discuss the share of emissions reductions across Europe, they must focus on how to do this effectively and avoid the possible repercussions of expanding the emissions trading scheme, writes Marcin Korolec.
Energy 26-04-2021

Sweetening the deal for heat decarbonisation

How can we expect people to invest in heat pumps if we deliberately make electricity more expensive than fossil gas, oil and coal? That’s like taxing water and subsidising sugary drinks, argues Samuel Thomas.
23-04-2021

A way forward to bring transport and buildings in the ETS

Rapid emission cuts need one carbon price for all sectors, including transport and buildings. But to move quickly enough, we should allow some differentiation for a limited time, writes Georg Zachmann. 

Four key issues to watch in the EU’s carbon market reform

EU carbon market emissions experienced a record fall last year, but when it comes to heavy industry, the effect is likely to be short-lived, writes Agnese Ruggiero.
08-04-2021

How Joe Biden could effortlessly boost aviation climate action

Europe is strengthening its carbon pricing system for aviation. After having fought the policy under the Obama administration, President Joe Biden has a chance to show that the world has changed and that the US is now ready to support real climate action, argues Jakop Dalunde.

Why the Commission is getting it wrong on climate number-crunching

The European Commission's cost-benefit analysis for its upcoming 'Fit for 55' package of green laws for 2030 is outdated, assuming an eye-watering 10% cost of capital for climate action, writes Brook Riley.
Climate change 10-12-2020

Worldwide coalition for carbon pricing is needed

Two-thirds of Paris Agreement signatories are using or considering carbon pricing schemes to achieve their emission reduction targets. The EU, China, and the USA should lead a worldwide “carbon pricing coalition” for the period 2030-2050, argue Jyrki Katainen and Karl-Henrik Sundström.
Circular economy 19-11-2020

Waste incineration across Europe and the UK: profit at the expense of climate

The EU and the UK must bring waste incineration plants within the scope of emissions trading schemes (ETS) if they are to achieve net zero-emissions and comply with the Paris Agreement, writes Georgia Elliott-Smith.
07-09-2020

A ‘solidarity clause’ in the EU climate law

The European Union should include a “solidarity clause” in its climate law to ensure that member states most burdened by the EU's new carbon reduction targets are compensated for the additional costs of purchasing allowances under the EU Emissions Trading System, writes MEP Anna Zalewska.
18-08-2020

Extended ETS outperforms carbon border adjustment in the power sector

Creating a carbon border adjustment mechanism would not work as well as extending the EU Emissions Trading Scheme to reduce global emissions and further integrate energy exporting countries into the European power market, argue András Mezősi, Zsuzsanna Pató and László Szabó.
Energy 15-05-2020

Green Deal – and electrification – should be the backbone of EU recovery plan

The Green Deal is Europe’s growth strategy. Making it the backbone of the recovery plan is not only necessary in a climate perspective, but also from an economic point of view – in order to create growth and work opportunities that are sustainable in the long run, argue Nordic energy CEOs and top executives.
14-04-2020

How the coronavirus outbreak affects the EU’s 2030 climate targets

Ultimately, the coronavirus pandemic may slow down initial plans to adopt the European Climate Law and a number of other climate-related policy proposals, writes Robert Jeszke.