Extension of the EU ETS on the way?

I am convinced that comprehensive carbon pricing is crucial – and in fact without alternative – for allowing renewables to compete on a level playing field and ultimately drive deep and cross-sectoral energy system transformation.

While one may argue that the carbon price provided by the EU ETS is for the time being not sufficiently high to unfold full impact, it still needs to be acknowledged that overall EU GHGE reductions have been mainly driven by the ETS sectors while not ETS-sectors have rather shown a sideways trend.

Based on that, I am happy to see that EC considers extending the EU ETS to (intra-EU) maritime emissions and possibly also to emissions from buildings and road transport or even all fossil fuel combustion with the aim to “provide a consistent carbon price signal across the internal market.”

This appears to be one of the major aspects of updating the EU ETS in line with the green deal and its increased ambition level; alongside with many other important yet tricky topics (carbon leakage, distributional questions, social dimension, etc.).

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