Executive Summary The EU Emissions Trading System (EU ETS) is the largest carbon market in the world and was originally seen as the cornerstone of Europe’s climate policies. However, the EU ETS has suffered from a large amount of excess emissions allowances largely caused by weak emission reduction targets and the inflow of carbon offsets. …
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Carbon Market Watch has presented new ideas on how to tackle the sixty percent of EU greenhouse gas emissions covered under the so-called Effort Sharing Decision (ESD). Two new reports published in June look at how successful the legislation, which only entered the implementation phase last year, has been in tackling emissions from sectors such as agriculture, transport and buildings which are not covered by the EU’s carbon market.
Sectors not included under the EU Emissions Trading Scheme (EU ETS), the so called non-ETS sectors are covered under the Effort Sharing Decision (ESD) which defines the 2020 greenhouse gas reduction targets for these sectors for each Member State. Although these non-ETS sectors include nearly 60% of the EU’s emissions, there has been little focus on the non-ETS sectors and the functioning of the ESD. The EU ETS started already in 2005. The ESD, on the other hand, is part of the 2020 climate and energy package which started only in 2013. The relatively short experience with the ESD may be one of the reasons for the limited awareness about the ESD. Few countries and even NGOs have thought about either the risks of potential loopholes or the opportunities the ESD offers to go beyond the current mitigation commitments.
The Effort Sharing Decision (ESD) covers 60% of EU’s total greenhouse gas emissions and is therefore a centrepiece of Europe’s climate legislation. In contrast to the EU’s Emissions Trading Scheme (ETS) which started in 2005, the implementation of the ESD only began in 2013. Therefore, little is known about how successful it has been tackling the sectors not covered by the ETS.
EU leaders brokered a deal on the 2030 climate and energy headline targets.
Global Aviation Market Mechanism Carbon Market Watch has been advocating for fair an effective climate protection in the aviation sector. Our work centers around the market mechanism that the aviation sector is currently debating. Aviation contributes to about 2% of global CO2 emissions and if other warming effects are included, total GHG effects of aviation …
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