Despite what European Commissioner Hoekstra has claimed, the EU ETS review proposal tabled on 17 July may be incompatible with the EU’s 2040 climate target.

A review of the total CO2 emissions allowed by the proposal will be presented by Climact. The calculation will address gaps left by the Commission’s methodology, and cover total emissions in the system: the cap, CDR allowances, MSR releases, and New Entrants’ Reserve releases.

Ahead of the presentation of the Draft report in the European Parliament’s ENVI Committee, it’s urgent to understand how tweaking the ETS Directive will affect the EU’s climate commitments. With the support of NGO Carbon Market Watch, these findings will be translated into policy priorities: how can policymakers improve this review proposal to ensure that ETS sectors deliver emissions reductions in line with our agreed climate targets?

Presentations available here