Category: EU Emissions Trading System (ETS)

EU Emissions Trading System (ETS)Industry Steel 2022
scrap steel
European Scrap Steel Floats Away Under Carbon Market Incentives

European Scrap Steel Floats Away Under Carbon Market Incentives

In 2021, over 14 million gross tonnes of ships were dismantled, with a third owned by European firms and largely scrapped in South Asia. This practice exports high-quality scrap steel that could otherwise support low-carbon steelmaking in Europe. However, EU carbon market rules currently favour carbon-intensive blast furnaces over cleaner electric arc furnaces (EAFs) by allocating more free emissions allowances to the former. This distorts incentives, discouraging investment in greener technologies. Sandbag calls for a faster phase-out of free allowances and a more comprehensive CBAM to promote domestic recycling and decarbonisation.

EU Emissions Trading System (ETS) 2022
Emissions covered by the EU’s Emissions Trading Scheme rebound but allowances in circulation remain as high as in 2019

Emissions covered by the EU’s Emissions Trading Scheme rebound but allowances in circulation remain as high as in 2019

This analysis is based on estimations using data available as of 4 April 2022. It will be updated as more data is made available during the coming weeks. The European Commission has released the bulk of its data on reported emissions from EU ETS sectors for the year...

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