Sandbag’s new report, released in the European Parliament on Wednesday, March 16, analyses the cement industry’s role in the EU Emissions Trading Scheme (ETS).
Our report shows the EU ETS has given the cement industry a license to pollute. Perverse incentives in the allocation design mean that the EU ETS is likely to have caused emissions in the cement sector to have risen. What’s more, we crown cement the new “EU ETS Fat Cat”, over-taking steel as the most over-allocated sector. These facts highlight the urgent need to reform the free allocation process, and we make suggestions on how to do this.