Climate Protection by way of the EU ETS

In cep’s view, the EU ETS is an ecologically sound and at the same time economically efficient instrument for reducing GHG emissions. Additional sectors should therefore be included in the EU ETS in the future. In addition, the proportion of emission allowances, that are allocated free of charge to EU industrial installations that compete internationally, should not be limited to 46%. This could counteract the transfer of emissions that are harmful to the climate, from the EU to third countries (“carbon leakage”).