Advanced Briefing of Sandbag's annual report on the EU carbon market
17.30-19.30, Tuesday 14th October 2014
The vast surplus of allowances in the carbon market continues to be the elephant in the room for European climate policy
The Emissions Trading Scheme is at a crossroads. New legislation has been tabled to tackle the mounting oversupply of carbon allowances and a steeper trajectory has been proposed under the 2030 framework. But are these fixes enough to make Europe's flagship climate policy relevant again?
As policymakers consider these new changes to the EU carbon market, we examine how the last major set of changes to the ETS legislation fared in 2013, the first year they were implemented. We document where things have improved, where the new measures have proved inadequate, and explore further options for reform.