Sandbag strongly supports the rebasing of the EU ETS cap to reflect actual emissions at the end of Phase 3. Without this the scheme is likely to fail against its main goal of securing adequate cost effective abatement. Here we outline the project impact of the main policy options for addressing EU ETS oversupply.
A number of other proposals under discussion can help alongside rebasing. However they are not enough to make the EUETS into an effective mechanism without realigning the scheme with reality.