This briefing represents Sandbag’s official feedback to the Commission’s draft ETS revision.
Building on our consultation submission and two reports published shortly before and shortly after the Commission proposal, this feedback seeks to summarise our main recommendations and update them in reference to the specific text proposed by the Commission.
We emphasise the need for:
- An increase in the headline ambition of European climate targets and the ETS budget
- Mechanisms that enable the ambition of the cap to be readily increased over time
- Maintaining scarcity within the cap by protecting the Market Stability Reserve and enhancing the New Entrants Reserve
- Tiered and targetted carbon leakage protections that prevent over-allocation and avoid a correction factor.
- Measures to increase innovation funding and make it go further, with more money directed towards industrial decarbonisation