Call to European leaders: do not bury the ETS2

(EurActiv, 7 Jun 2022) The European Parliament’s proposed reform of the EU Emissions Trading Scheme (ETS) fails to guarantee emission reductions in the housing and transport sector in line with the bloc’s 2030 climate objectives, writes a group of academics and civil society groups.

This opinion article is signed by a group of 26 academics specialised in economics and climate policies as well as NGO representatives.

The European Parliament is currently working on the ‘Fit for 55’ package proposed by the Commission to reduce CO2 emissions by 40% in the current decade (that is -55% between 1990 and 2030), with the further objective of climate neutrality in 2050. 

This package, the core element of the European Green Deal, is a consistent set of legislations that would achieve the EU’s climate goal in a rather fair and efficient way.

Simplifying a bit (see here for details on the Green Deal), the EU emissions are separated into two categories. The first category comprises large industrial installations (power plants, steel mills, cement factories, etc.): the 40% of EU emissions they represent are subject to an emissions trading scheme (ETS).

Their emissions are verified, and the cap on allowances (or emission permits) put into circulation each year ensures that industrial emissions do not exceed the planned values.

The second category contains all other CO2 emissions, which are currently not subject to an enforceable cap. The Commission aims to cap most of these other emissions through a second market of emission permits.

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EurActiv, 7 Jun 2022: Call to European leaders: do not bury the ETS2