Why the flagship emissions trading policy needs rescuing
The EU Emissions Trading System (ETS) is a central plank of the EU’s policy framework towards tackling climate change. Covering 50% of Europe’s emissions it creates approximately 2 billion tradeable permits a year. The scheme has the capacity to be a very powerful tool in cutting carbon emissions in the EU but it is currently a blunt tool, not delivering to its full potential. This report identifies two major flaws with the Emissions Trading Scheme as it stands and discusses the impact of these in relation to EU ambition on tackling climate change.