Carbon Market Watch

For fair and effective climate protection.

Reports & Studies

Policy Brief: Good-Bye Kyoto: Transitioning away from offsetting after 2020

The 2015 Paris Agreement, which sets out the framework for global climate action after 2020, includes the establishment of the Sustainable Development Mechanism (SDM). The goals of the SDM are to promote higher ambition that contributes to emission reductions and sustainable development, and deliver an overall mitigation of greenhouse gas emissions. more »






EU Climate Leader Board – Where countries stand on the Effort Sharing Regulation

EU Member States are currently negotiating Europe’s key legislation for climate action, known as the Effort Sharing Regulation. Covering 60% of the EU’s greenhouse gas emissions, the law will set binding national emission reduction targets for the 2021-2030 period for sectors such
as transport, buildings, agriculture and waste. In July 2016, the European Commission published the proposal for an Effort Sharing Regulation setting the basis for negotiations between EU ministers and Members of the European Parliament. more »











Policy Brief: Addressing aviation emissions under the EU Emissions Trading System

In February 2017, the European Commission presented a legislative proposal regarding coverage of aviation emissions by the EU’s Emissions Trading System (EU ETS). In response to the offsetting agreement reached in the International Civil Aviation Organisation (ICAO) in October of 2016, the Commission proposes to cover only intra-European flights with the EU ETS and to exclude flights entering and leaving Europe. more »











How the EU ETS can incentivize cement’s low-carbon transition

On 14 February 2017, the plenary of the European Parliament will vote on the revision of the EU Emissions Trading System (EU ETS) for the 2021-2030 period. Members will vote on the report of the environment committee (ENVI) which was adopted in December 2016. A key element of the compromise reached between all major political groups in ENVI is the introduction of a mechanism that requires importers of cement and clinker to also pay for their pollution, while ensuring that carbon costs are reflected in material prices. more »











European climate policy guide: Vol II – EU Effort Sharing Regulation

This guide aims to build knowledge and understanding of the EU’s Effort Sharing Regulation for civil society organizations who have little or no prior experience with EU climate policies. It provides introductory knowledge on how the EU ETS is designed and how it functions. Increased awareness should ultimately empower civil society to get involved in the ETS process. more »











NAMA lessons for NDCs: Financing, public participation, and sustainable development

Nationally Appropriate Mitigation Actions (NAMAs) have proven to be a good exercise that paved the way to national level mitigation and a move from project to sectoral based mitigation. Their evolution has developed one of the most valuable tools that developing countries have to pursue their national commitments towards limiting global warming to 2C in […] more »






EU Emissions Trading System Quiz

Test your knowledge on the EU Emission Trading System (EU ETS) by playing our short quiz! EU Emissions Trading System Quiz Test your knowledge on the EU Emission Trading System (EU ETS) by playing our short quiz! Answers available in Carbon Market Watch’s new report on “Industry windfall profits from Europe’s carbon market 2008-2015′ and […] more »






Cement’s pollution windfall from the EU ETS

The cement sector is responsible for 5% of global greenhouse gas emissions. In Europe, the sector emits more greenhouse gases than the whole Belgian economyi. In light of the Paris Agreement objectives, the cement industry will need to achieve deep emission reductions in the coming years. The EU’s main instrument to decarbonise cement – the EU ETS – has however failed to deliver this so far: By subsidizing pollution, there has hardly been a sufficient economic incentive to leverage emission cuts in the cement sector. more »











Mythbuster Reload – Industry windfall profits from Europe’s carbon market 2008-2015 

This report interprets the findings of an updated CE Delft study that shows how energy-intensive companies in 20 European countries have massively profited from their pollution because they are deemed at risk of “carbon leakage”. “Carbon leakage” refers to the hypothetical situation where companies transfer production to countries with weaker climate policies in order to lower their costs. Under the current EU Emissions Trading System (EU ETS) rules, industrial companies that are believed to be at risk of “carbon leakage” are awarded free emission allowances. more »











Policy Brief: Carbon Markets in the Post Paris World

The Paris Agreement represents a new era for international climate action, including for international carbon markets. Humans have emitted so much into the atmosphere that even if compensated, very little can still be emitted to limit serious consequences of climate change. 2°C of warming would have very negative effects, which is why it is important to swiftly work towards the Paris goal of the 1.5°C limit. If carbon markets are to help work towards this goal, they must work to rapidly increase ambition and guarantee high environmental integrity. more »