Emissionshandel

A reform of the emissions trading system (ETS) is currently being discussed at EU level. Proposed by the European Commission, this includes the extension of carbon pricing to the sectors of road transport and buildings, as well as the supplementary launch of a Social Climate Fund (SCF) for social compensation. In an open letter, Germanwatch, together with 37 other organizations, calls for the new ETS not to be seen as a further burden for Europeans, but as an effective response to the energy and climate crisis.

In July 2021, the European Commission proposed introducing an emissions trading system for transport and buildings. Does the proposal meet the requirements of effective climate action and social compatibility? Where should improvements be made? These questions are answered by the study “Criteria for an effective and socially just EU ETS 2 – Assessment of the EU Commission’s Proposal on an EU ETS for buildings & road transport (EU ETS 2)”, which was prepared by the Forum Ökologisch-Soziale Marktwirtschaft and the Forschungsstätte der Evangelischen Studiengemeinschaft on behalf of Germanwatch, Klima-Allianz Deutschland, WWF Deutschland and CAN Europe.

The outcome of the UN climate conference is one of ambivalence: while there is strong momentum for phasing out coal and pressure being placed on reluctant climate action, for the 1.5 degree limit to come within reach, China in particular needs to improve its climate target soon and the US needs to implement its very well. In addition, results on the issue of Loss and Damage are insufficient.

The European Union Emission Trading Scheme (EU ETS) is facing serious problems. Clear decisions are necessary to ensure that the EU ETS will realise its double potential during the third EU ETS period as a key instrument for reducing emissions and generating revenues for national and international climate action.The paper will shed light on the potential of the EU ETS as a finance instrument. And it will “reactivate” the question regarding earmarking the EU ETS revenues.

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.