In or Out: What’s best for carbon removals and the EU ETS?

What will the future of the EU Emissions Trading System (ETS) look like as the emissions cap heads towards zero? Is integrating carbon dioxide removals (CDRs) into the ETS a solution to help the EU achieve its climate goals? Or would they compromise the integrity and functioning of the system? These questions are at the forefront of the Commission’s mind as they review different options for the future of the ETS ahead of the 2026 revision.

For a systematic use of default value in the CBAM

The current carbon emissions reporting in the CBAM fails to achieve its goal of replacing free allocations under the EU ETS and undermines its integrity. A systematic default value system would improve the CBAM and safeguard the EU ETS.

CBAM DRI loophole requires new free allocation reform

We took part in a targeted survey run by the European Commission’s DG TAXUD on methodologies used to calculate embedded emissions and the rules for adjusting CBAM obligations alongside free allocation under the ETS. Our proposal: free allocation should be reformed to close the ‘DRI loophole’.

Feedback on the EU Commission’s draft methodology for low-carbon hydrogen

For ‘low carbon’ hydrogen to truly make a positive contribution to Europe’s transition to climate neutrality, the safeguards put in place must be meaningful. Unfortunately, this does not appear to be the case in this draft delegated act.

Metallurgical flexibility: Enabling the aluminium and steel sectors for demand response

Electrification and flexibility are critical to decarbonising both industrial and electricity systems. But what happens when we combine the two? Industrial flexibility will play an increasingly important role as industry moves towards electrification.

A closer look at 2023 emissions: steelmaking caused a quarter of industry pollution

This brief analyses 2023 emissions under the EU Emissions Trading System (EU ETS), using the latest data available from the EU Transaction Log (EUTL) . It particularly focuses on the iron and steel sector.

We’re a non-profit climate change think tank which uses data analysis to build evidence-based campaigns on climate policy

We focus on EU policies such as the EU Emissions Trading Scheme, carbon border adjustment mechanisms and emissions reductions in industrial sectors. We believe in Europe’s ability to lead climate action by example and use its large market and ability to stimulate technological competition as an incentive for others to follow. But we’re also aware of the risk that Europe might fail to deliver on its own pledges, which is why we want to get EU climate policy right.

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CBAM

Our work on the Carbon Border Adjustment Mechanism

 

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In or Out: What’s best for carbon removals and the EU ETS?

In or Out: What’s best for carbon removals and the EU ETS?

What will the future of the EU Emissions Trading System (ETS) look like as the emissions cap heads towards zero? Is integrating carbon dioxide removals (CDRs) into the ETS a solution to help the EU achieve its climate goals? Or would they compromise the integrity and functioning of the system? These questions are at the forefront of the Commission’s mind as they review different options for the future of the ETS ahead of the 2026 revision.

read more
For a systematic use of default value in the CBAM

For a systematic use of default value in the CBAM

The current carbon emissions reporting in the CBAM fails to achieve its goal of replacing free allocations under the EU ETS and undermines its integrity. A systematic default value system would improve the CBAM and safeguard the EU ETS.

read more
CBAM DRI loophole requires new free allocation reform

CBAM DRI loophole requires new free allocation reform

We took part in a targeted survey run by the European Commission’s DG TAXUD on methodologies used to calculate embedded emissions and the rules for adjusting CBAM obligations alongside free allocation under the ETS. Our proposal: free allocation should be reformed to close the ‘DRI loophole’.

read more

TESTIMONIALS

Sandbag is recognised as a top global climate think-tank

An inspirational idea that promises to make a real and positive difference… and a wonderful opportunity to help sort out the climate mess we’ve all created. Prof. Chris Turney is the author of Ice, Mud and Blood: Lessons from Climates Past
Chris Turney

Professor, University of Exeter

Sandbag is playing a crucial role in making sure that Europe’s cornerstone climate policy actually does its job.
Caroline Lucas

United Kingdom MP

Sandbag… strikes a balance between underlining the merits of the EU ETS and criticising the weaknesses.
Connie Hedegaard

Former European Commissioner

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