Reform of the EU ETS

In its revision of the Directive on the EU Emissions Trading System (EU ETS), the EU should even after 2020 issue free allowances to companies at risk of emigrating in order to prevent the relocation of carbon emissions to non-EU countries.


This cepInput evaluates the economic effectiveness of the EU ETS and examines the impact of allowance price levels on its functioning. Furthermore, it sets out core requirements which should be considered when the ETS Directive is revised.