Dilution doesn’t fix pollution: ETS2 must work for people and climate
The Commission planted a carbon bomb in its proposal to reform the supply control mechanism within the EU’s carbon pricing scheme for road transport and buildings.
The Commission planted a carbon bomb in its proposal to reform the supply control mechanism within the EU’s carbon pricing scheme for road transport and buildings.
Carbon Market Watch welcomes this Commission initiative and believes that early auctioning of 450 million ETS2 allowances should be taken forward. The effectiveness of the ETS2 to deliver meaningful and timely greenhouse gas emission reductions is being undermined by various initiatives, such as the watering down of the system through weakening the MSR and the one-year delay decided during the EU Climate Law revision.
02 December 2025 | 14:00-15:30 CET | Online
This explainer highlights the risks such changes will create in terms of generating higher emissions and the dangers politically of opening up different legislative instruments.
15 September 2025 | 14.00-15:30 CET | Online
18 June 2025 | 14.30-16.00 CET | Online
Our latest FAQ has the answers to everything you always wanted to know about the Social Climate Fund
Although the enlarged Emissions Trading System will impose a cost on emissions from buildings, the revenues it generates should be used to decarbonise European homes and to eradicate energy poverty. Some trailblazing projects showcase these possibilities.
We can draw vital lessons from the functioning of the EU’s current Emissions Trading System to expand it to the building and transport sectors in a way that serves the climate and advances social justice. In its current shape, the EU’s Emissions Trading System (EU ETS) is far from perfect. It falls short on overall …
Read more “Designing a sound EU carbon market for buildings and transport”