CCAP Supports Structural Reform of the EU Emissions Trading System
Last week the European Parliament supported a temporary measure that will stabilize the EU carbon price in the coming years.
This so called “backloading” proposal will delay the auctioning of up to 900 million EU allowances over the next several years. These allowances will then be returned to the market before 2020. Although a positive move, a more fundamental reform to the EU Emissions Trading System (EU ETS) will be required in the near future in order to address the structural surplus of EU allowances.
This past February CCAP published “The New Deal: An enlightened industrial policy for Europe through structural EU ETS reform.” This paper addresses the fundamental issues that have been standing in the way of a thorough EU ETS reform so far. More precisely, CCAP explored opportunities to meet the concerns related to EU industrial competitiveness and integrate them into a structurally reformed EU ETS.