EU Emissions Trading System

Press release
14 Jul 2021

European carbon market does not move with the climate urgency of our times

Brussels, 14 July 2021 – The European Commission’s proposals to improve the EU Emissions Trading System (ETS) and establish a Carbon Border Adjustment Mechanism (CBAM) are not in line with the Paris Agreement and Europe’s historic responsibility to cut emissions. The legislation initiative keeps neglecting the “polluter pays” principle of the EU Treaties and continues…

Read more →

Carbon Market Watch News
By Kaisa Amaral on 1 Jul 2021

Carbon Market Watch Newsletter June 2021

Forestry offsets allow Colombian fossil fuel companies to dodge taxes Colombia has a carbon tax in place, but companies are allowed to buy offsets to avoid paying the tax.  Our new investigation finds that two large-scale Amazonian forestry projects have sold carbon credits for way more emission reductions than they have actually achieved. Such “hot…

Read more →

Opinion
By Andrew Marshall on 30 Jun 2021

New EU ETS: time for steel, cement and chemicals to (be)come clean

The EU carbon market has helped drive down carbon pollution from Europe’s power sector but has failed to do the same for heavy industries such as cement, steel and chemicals. A part of the reason is the free allocation of pollution permits, which means that the industry has little incentive to clean up its act….

Read more →

Briefings
30 Jun 2021

How can the EU Emissions Trading System support a union-wide coal phase-out

This policy paper complements the briefing “A New Hope – recommendations for the EU Emissions Trading System review” Introduction: The EU Emissions Trading System (EU ETS) has been hampered by a historical oversupply since its inception. Since 2019, some of the excess allowances are being absorbed by the Market Stability Reserve (MSR), and a portion…

Briefings
30 Jun 2021

Survival guide to EU carbon market lobby: debunking claims from heavy industry

Executive summary The Emissions Trading System (ETS) is a centrepiece of the EU’s climate policy and its main tool to reduce greenhouse gas (GHG) emissions from Europe’s industrial and power sectors. Until today, most of the emission reductions achieved under the EU ETS were driven by the power sector due to fuel switches in the…

Carbon Countdown podcast
By Kaisa Amaral on 29 Jun 2021

How the heavy industry is profiting from the EU carbon market

Welcome to Carbon Countdown, a podcast by Carbon Market Watch covering all things carbon pricing and climate action Episode 3: How the heavy industry is profiting from the EU carbon market Carbon Market Watch · [Carbon Countdown] EPISODE 3: How the heavy industry is profiting from the EU carbon market Music: Ambient Technology by Joystock…

Read more →

Briefings
10 Jun 2021

How can the EU Emissions Trading System drive the aviation sector’s decarbonisation?

This policy paper complements the briefing “A New Hope – recommendations for the EU Emissions Trading System review” Introduction: The aviation sector is responsible for nearly 4% of the EU’s total CO2 emissions, and is the second biggest contributor to transport emissions, after road transport. While in flight, planes emit CO2 and also impact the…

Briefings
7 Jun 2021

Additional profits of sectors and firms from the EU ETS 2008-2019

This report by CE Delft was commissioned by Carbon Market Watch Summary This study has calculated the additional profits that sectors and companies have made from the EU ETS between 2008 to 2019 for the fifteen most CO2-intensive sectors plus aviation in nineteen EU countries. In our study we have investigated three types of profits:…

Press release
By Kaisa Amaral on 7 Jun 2021

Europe’s industry polluters make €50 billion in carbon market windfall profits

BRUSSELS, 7 June 2021 New analysis shows that the energy-intensive industry across Europe has profited up to €50 billion from 2008 to 2019 as a result of the free allocation of pollution permits under the EU Emissions Trading System (EU ETS). The findings in the report from independent environmental consultancy CE Delft highlight the need…

Read more →

Briefings
7 Jun 2021

The Phantom Leakage – Industry windfall profits from Europe’s carbon market 2008-2019

Executive summary  Since its inception, the EU Emission Trading System (EU ETS) has been giving free allowances to most energy-intensive industries deemed at risk of carbon leakage.  “Carbon leakage” refers to a hypothetical situation where companies transfer production to countries with weaker climate policies in order to lower their costs.  This policy briefing interprets the…