EU emissions trading

The Emissions Trading System (ETS) is flawed by design and has substantially failed to reduce greenhouse gas emissions. In July 2015, the Commission published “Enhancing cost-effective emission reductions and low carbon investments”, its proposal to revise and extend the ETS to 2030 and beyond. In the light of this debate, CEO offers a brief reminder of some key lines of argument against the Emissions Trading System and the evidence to back those up.

We also offer a close reading of the Commission proposal itself, in the spirit of “damage limitation,” putting the proposed reforms in context, pointing out dangers and suggesting alternatives where possible, and drawing attention to what is missing.