Don’t Ruin the EU ETS! Joint NGO Letter to the European Council

Ahead of the March European Council meeting, we’ve joined a group of 35 civil society organisations calling on EU leaders to protect the integrity of the EU Emissions Trading System.

Chemicals and CCS/U: Exploring the role of carbon capture in the sector’s transition to ‘circularity’

This technical brief explores the potential role of carbon capture, storage and utilisation (CCS/U) for Europe’s chemicals sector.

We find that CCS/U will be necessary in Europe’s chemicals sector, but only to a limited extent in targeted applications.

The EU CBAM gives a boost to Algeria’s iron exports

Sandbag’s brief assesses how the EU Carbon Border Adjustment Mechanism (CBAM) may affect Algeria’s iron and steel exports. It finds that although Algeria’s overall exposure to CBAM is limited, rising EU carbon costs are likely to increase EU market prices, with implications for the revenues and competitiveness of Algerian exports.

CBAM and Fertiliser Inflation in 2026: The facts behind the numbers

Estimates suggesting that the EU’s Carbon Border Adjustment Mechanism (CBAM) could increase fertiliser prices by up to 30% have brought a central question into focus: how
significant is the inflationary impact likely to be?

The CBAM dividend for Namibia and Ghana

This research note shows that Namibia and Ghana are likely to benefit from the CBAM, as EU price increases linked to the EU ETS outweigh CBAM fees under current exports. It also sets out transparent transformation scenarios, based on announced industrial projects, to show how expanded and lower-emissions production could further increase export revenues over time.

Steel labelling: Beyond the sliding scale

As EU policymakers debate how to certify low-carbon steel, Sandbag’s new briefing analyses the “sliding scale” method — and outlines why it may hinder rather than help decarbonisation. A new model is proposed based on product-specific benchmarks, multi-tier ratings, and circularity incentives.

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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Our work on the Carbon Border Adjustment Mechanism

 

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Publications

Sandbag’s Response to the CBAM Calls for Evidence

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.

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CBAM impact on US trade: an analysis

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.

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The EU CBAM: A Two-Way Street to Climate Integrity?

The EU CBAM: A Two-Way Street to Climate Integrity?

Supported by the Konrad-Adenauer-Stiftung, Sandbag’s report examines the impact of the EU’s Carbon Border Adjustment Mechanism (CBAM) and the gradual removal of free allowances on third-country exporters. The joint implementation is expected to raise production costs for both EU and non-EU producers, leading to higher prices for CBAM-covered goods in the EU.

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Heat up industry, not the climate!

Heat up industry, not the climate!

The European Commission has set out proposed terms and conditions for its auction on electrified /renewable industrial heat under the Innovation Fund (IF). We support the IF’s acknowledgment that indirect emissions are linked to the timing of electricity consumption rather than the source of electricity used. However, although it claims an intention to limit electricity use at hours of high marginal emission intensity, we are concerned that the proposed terms might lead to the opposite and significantly limit the scheme’s climate benefits.

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Strengthening the CBAM — by default

Strengthening the CBAM — by default

The consultation aims to address concerns that the CBAM has loopholes that could distort competition between products manufactured in the EU (covered by the EU ETS) and imported goods. Our response sets out proposals for how the design of the CBAM could be improved in these regards.

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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

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