ICC reform and expansion risks diverting ETS revenues from real climate action

Sandbag and 14 other organisations urge the European Commission to reform, not expand, the ETS Indirect Cost Compensation scheme — warning that current proposals risk diverting climate funding into untargeted fossil subsidies.

Sandbag’s feedback to the call for evidence on the Circular Economy Act

Sandbag’s submission to the European Commission’s Circular Economy Act Call for Evidence highlights the importance of improving steel scrap quality, setting minimum recycled content requirements, and aligning carbon incentives to enhance circularity across the EU industrial sector.

The EU CBAM: a two-way street between the EU and Africa

Sandbag’s newly released CBAM Simulator allowed us to explore how the EU’s Carbon Border Adjustment Mechanism (CBAM) could impact African exporters — and how cleaner production and carbon pricing could turn a cost into a competitive edge.

Electrification or electrical decarbonisation? We need both!

Sandbag’s response to the EU’s Electricity Action Plan highlights why both electrification and power sector decarbonisation are essential. It warns that growing electricity demand risks cannibalising clean power, unless renewable deployment accelerates.

Sandbag’s Response to the CBAM Calls for Evidence

Sandbag has submitted responses to the EU’s CBAM calls for evidence, addressing emissions reporting, adjustment for free allocation, and carbon prices paid abroad. We highlight risks such as loopholes and unequal treatment, and propose practical solutions to strengthen CBAM’s effectiveness and fairness.

CBAM impact on US trade: an analysis

Sandbag’s September 2025 research note explores the impact of the EU’s CBAM on US exports. It finds that even with expanded scope, the financial impact remains marginal — and US carbon pricing could turn net costs negative.

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.

Our Work

Carbon Pricing

Our accomplishments on Carbon Pricing

Industry

Our policy recommendations on EU industry

CBAM

Our work on the Carbon Border Adjustment Mechanism

 

Data Tools

Explore all of our data tools

Financing

Our research on EU funding

Publications

Aligning Phase 4 EU ETS reform with reality

Today Sandbag published a new briefing on Phase 4 reform of the EU ETS, providing new insights on different scenarios for reducing the surplus of European Union Allowances (EUAs). Below is a summary...

read more

Bored to tiers: Reforming carbon leakage

This week, Sandbag presented its ‘tiering’ proposal to the Environment Committee shadow rapporteurs meeting on reforming the Emission Trading Scheme. The proposal recommends a way to improve ‘carbon...

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

Mundo Matogné. Rue d’Edimbourg 26, Ixelles 1050 Belgium. Sandbag is a not-for-profit (ASBL) organisation registered in Belgium under the number 0707.935.890. EU transparancy register no. 277895137794-73. VAT: BE0707935890

PUBLICATIONS
NEWSLETTER

Read our full Privacy Policy here.