Reform of the EU-ETS

The 2030 targets include a 40 % emission reduction in 2030 with 1990 levels. For the ETS this means a 43 % emission reduction in 2030 with 2005 levels. Non-ETS sectors such as agriculture, buildings, or transport will have to reduce 30 % of their emission in 2030 with 2005 levels.

In 2015, the Commission has presented a proposal for the ETS design after 2020. The rules to avoid carbon leakage are at the heart of the discussion. Critical points include the auctioning share, the budget for free allocation, carbon leakage criteria, the updating of benchmarks, and measures to protect industries from indirect carbon costs. There are also proposals for price mechanisms and border tax adjustments. And there is the question, whether the Paris Agreement implies that ambition needs to be reassessed and possibly raised around 2025.

Current research activities of FutureCamp regarding the reform and revision of the ETS include, inter alia, the analysis of costs for industries at sectoral and operator / installation level, the operation of a market model, calculations regarding the cross-sectoral correction factor, and implications of carbon leakage criteria.

 

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