Why Free Allocation in the EU ETS Must Stop Urgently

Free allocation (FA) under the EU ETS has been criticised for directing large amounts of taxpayers’ money towards incumbent polluting plants, turning the polluter-pays principle on its head and not being sustainable in the long run. It also creates competitive...

Urgent: CBAM needed to abolish free allocation under the EU ETS

Why was the CBAM proposed in the first place? In July 2021, the EU announced its Fit for 55 package - a sweeping set of climate and energy policy proposals which forms the EU’s approach to combat the effects of climate change. This package is the EU’s toolkit for...

Feedback on the EU ETS reform

Sandbag welcomes the opportunity to provide feedback on the update of the EU ETS under the FF55 package. Our analyses [1] show that the proposed changes are not enough to guarantee that emissions will stay below the cap and that they could exceed it by 45% in 2030....

Impact of EU ETS reform: letting industry loose

This note aims to put numbers on the amendment proposed by the European Commission to the Directive ruling the European Emissions Trading Scheme (ETS) as part of its Fit-for-55 package, and its impact on the supply and demand balance of emission allowances (EUA). In...

A storm in a teacup: impacts and geopolitical risks of the European Carbon Border Adjustment Mechanism

Report | A storm in a teacup Impacts and geopolitical risks of the European Carbon Border Adjustment Mechanism. Sandbag and E3G were commissioned by Energy Foundation China to analyse the impact of the CBAM proposed by the European Commission in its Fit For 55...

New study shows limited trade impacts of European Carbon Border Adjustment Mechanism

The impact of the likely Carbon Border Adjustment Mechanism (CBAM) on European importers will be minor, according to a new report by Sandbag and E3G. The CBAM only covers 3.2 percent of goods imported into Europe, but 47 percent of the free emission allowances...

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 using 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’s might fail to deliver on its own pledges, which is why we want to get EU policy right.


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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