How do EU companies react to the EU ETS?

This compilation of survey results shows how much companies involved in the EU emissions trading system (EU ETS) expect the EU to reform the ailing carbon market – by implementing the backloading proposal of the European Commission as a first step. Respondents are confident that the EU will adopt a 30% emissions reduction target for 2020 as a corner stone of further ETS reform.

The survey also shows how little real impact on investments the EU ETS has so far. In a situation in which in 2012 only 17% of companies had to buy allowances – in comparison to 41% that wanted to sell allowances – the market has virtually collapsed. Under these circumstances, the ETS does not fulfil its task to provide for long-term price signals that encourage companies to invest into lowcarbon technologies.