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Welcome to Sandbag’s August newsletter!
Sandbag continues to deepen its work on the CBAM and the EU ETS.
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In this edition, we share insights from our latest public consultation responses, technical briefs, and how we have updated our EU ETS Simulator.
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Our latest updates
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Webinar: The CBAM's real impact on India
Tomorrow, on 4 August, at 2pm CET, we invite you to join our webinar on our upcoming report which analyses the CBAM’s impact for India based on our updated CBAM simulator.
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The webinar will provide an introduction to our report’s key findings, a tutorial for the simulator, and a panel discussion with Carolyn Fischer from the World Bank and Darshna Singh from CEEW, and Sangeeth Selvaraju, Policy Fellow at the Grantham Research Institute at LSE.
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We will also hear special remarks from Jonathon Carruthers-Green from steel data provider MEPS International on the CBAM’s impact on European steel prices.
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You can sign up to join the webinar here.
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Website Updates
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We are happy to announce that our website updates are complete and we added a new page to highlight our impact and our advocacy.
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On 4 August, we will publish a new report on CBAM’s real impact for India. Stay tuned to read about how the CBAM could be an opportunity for India.
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On that same date we will also launch our updated CBAM Simulator:
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- It estimates CBAM fees per country, sector and even single products,
- It estimates the net cost of the CBAM, taking into account revenues expected from higher EU market prices for CBAM goods
- It simulates different responses of exporting countries, potential scope extensions of the CBAM
- Costs are given for each year from 2026 onwards, using the regulation's methodology (SEFA) with CBAM benchmarks
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Whether the carbon price is right: response to the European Commission’s public consultation on carbon price paid in third countries
(12 July 2026)
In Sandbag’s response to the European Commission’s public consultation on the carbon price paid in third countries under the CBAM, we raised issues arising with counting fuel taxes as carbon price paid, imposing foreign carbon pricing mechanisms (CPM) different thresholds than the EU ETS, and recycling CPM revenues into subsidies to polluters.
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EU ETS
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Updated EU ETS Simulator
(24 July 2026)
Following the European Commission’s proposal on 17 July, we adjusted with new data, new scenarios, and new display metrics. It is now live!
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Peter Liese's stakeholder dialogue
(22 July 2026)
At a stakeholder’s dialogue organised by MEP Peter Liese, we argued that the EU ETS was seen as a short-term fundraising instrument, caring too much about the revenues from allowances sold and not enough about the ambition that would create a long-term business case for clean production.
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Sandbag responds to Thyssenkrupp
(16 July 2026)
Our brief on how the ETS is a net benefit for European steelmakers was covered by ESG.Table, alongside a response from Thyssenkrupp Steel, which raised three objections. This is a response to the German steelmaker’s response.
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EU steelmaking: the ETS money is coming!
(7 July 2026)
This brief challenges recent industry claims that EU steelmakers will be harmed by phase-out of free allocation under the EU’s Emissions Trading System, and finds that the opposite is true.
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EU ETS Reform: Let’s not invalidate climate policy!
(10 June 2026)
Based on our updated EU ETS simulator, this technical brief models the impact of the several proposals on the carbon market’s supply/demand balance under the European Commission’s impact assessment emission scenarios.
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We shared tutorials for our updated EU ETS Simulator, with which we modelled the impact of the policy proposals we analysed in our brief:
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- Tutorial 1: The EU ETS has enough surplus allowances to meet the EU-wide 90% emission reduction target by 2040.
- Tutorial 2: The EU Commission’s proposal to stop the invalidation of emission allowances in the Market Stability Reserve after 2027?
- Tutorial 3: Combining design proposals by MEP Peter Liese and the EU Commission would set us on course to emission reductions of 75%, not 90%
- Tutorial 4: The benefits of restricting the aviation sector’s access to stationary allowances
We also had the opportunity to participate in a meeting by the Arbeitsgruppe Emissionshandel (AGE), an initiative of the German Federal Ministry for Environment, Nature Conservation and Nuclear Safety (BMUKN). During the meeting we presented the key findings of our brief, as well as options to avoid triggering the CSCF.
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Improving EU ETS benchmarks: Response to the European Commission’s public consultation on EU ETS benchmarks
(9 June 2026)
Sandbag’s response to the public consultation on the European Commission’s proposed revision of the benchmark values of free allocation of emission allowances (2026-2030).
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Rhetoric vs reality: setting the record straight on the impact of the EU ETS on industrial competitiveness
(5 May 2026)
This brief examines whether the claims by Czechia and Italy that the EU ETS is responsible for declining industrial competitiveness hold up to scrutiny.
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Sandbag in the News
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Rules for the carbon market melt in Europe, July 2026
(22 July)
Sandbag’s reaction to the EU ETS review was captured in an article by Global Cement.
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Carbon – In focus: All eyes on the EU ETS review
(10 July)
Sandbag’s Adrien Assous, was interviewed for an article on the Commission’s EU ETS review.
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ETS: Why emissions trading could be profitable for European steelmakers
(8 July 2026)
Table.Briefings covered our technical brief which challenges recent industry claims that EU steelmakers are being harmed by the EU’s Emissions Trading System and finds that the opposite is true.
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Steelmakers set for EU ETS “jackpot” despite free allocation fears, think-tank says
(7 July 2026)
Carbon Pulse covered our technical brief which challenges recent industry claims that EU steelmakers are being harmed by the EU’s Emissions Trading System and finds that the opposite is true.
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Loosening of EU carbon market could derail climate goals, generate major surplus, finds analysis
(10 June 2026)
Carbon Pulse covered our technical brief which models the impact of the several proposals on the carbon market’s supply/demand balance under the European Commission’s impact assessment emission scenarios.
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Commission leak on ETS reform causes ups and downs
(7 May 2027)
Energate covered our , which examines whether the claims by Czechia and Italy that the EU ETS is responsible for declining industrial competitiveness hold up to scrutiny.
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Prague and Rome’s ETS broadsides a ‘smokescreen’: Think tank
(7 May 2026)
Contexte covered our brief, which examines whether the claims by Czechia and Italy that the EU ETS is responsible for declining industrial competitiveness hold up to scrutiny.
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Attacks on EU ETS a “smoke screen” to deflect from inaction on real industry issues -report
(5 May 2026)
Carbon pulse covered our brief, which examines whether the claims by Czechia and Italy that the EU ETS is responsible for declining industrial competitiveness hold up to scrutiny.
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You can read all of our publications on our website here.
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We want to hear from you!
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Do you have feedback on our newsletter? Let us know!
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Stay informed on Europe’s decarbonisation journey — follow Sandbag for the latest analysis, insights, and policy updates.
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