The 2040 homestretch: Enhancing EU climate action before and after 2030 – the role of the EU ETS and carbon removals

This policy document outlines recommendations for how the EU’s Emissions Trading System (EU ETS) EU can help the EU decarbonise its economy by 2040. It was submitted in response to the European Commission’s public consultation on the EU climate target for 2040. 

In order to achieve this 2040 goal, the EU needs to raise its ambition now, not after 2030. Even though the ‘Fit for 55’ package of policy measures was only agreed at the end of 2022, it has one fundamental flaw which undermines its ability to deliver on the EU’s climate goals for this decade: it aims for a net decrease in emissions of at least 55% by 2030, at a time when the science clearly shows we need gross cuts of at least 65%. ‘Fit for 55’ needs to become ‘Fit for 65’ as soon as possible. The EU has run up a serious carbon deficit, this urgently requires the wise allocation of our remaining budget.

Open safety deposit boxes

Plundering the EU’s carbon market to fight the energy crunch is self-defeating

Raiding the reserve that underpins the EU’s Emissions Trading System to reduce the European Union’s dependence on Russian gas is short-sighted and destructive, especially as far better solutions exist. The Market Stability Reserve (MSR) is an important element of the EU Emissions Trading System. It has proven effective in supporting the carbon price, and helped …

July newsletter editorial: Keeping hope alive for 1.5

The EU’s recent failure to rise to the unprecedented challenge presented by the climate emergency should not lead us down the path to cynicism but must prod us to redouble our efforts to bring about meaningful change,

Carbon Dioxide Removal in the EU: pitfalls and opportunities

Date: 27 April 2022 Time: 15:00-16:20 CET Carbon dioxide removal (CDR) refers to activities that take carbon dioxide out of the atmosphere, and store it permanently. Most IPCC AR6 decarbonisation pathways require some amount of carbon removals to keep warming to 1.5 degrees. However, risk-averse climate strategies aim to minimise the reliance on CDR as they can …

Designing a sound EU carbon market for buildings and transport

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 …