Caution! Free allocation on the rise

6 December 2016 In October 2014, the EU Council opted to continue allocating free allowances to protect certain sectors from the assumed risk of carbon leakage in Phase 4 of the EU ETS. However, experience has shown that such decisions can lead to many highly emitting...

Comparing options for ETS reform

26 November 2016 Sandbag has examined various options for adjusting the supply of allowances in Phase 4 of the EU ETS. Our analysis reveals that rebasing the cap to reflect the actual level of emissions at the end of Phase 3 is by far the most effective way of...

Addressing EU ETS Oversupply

21 November 2016 Sandbag strongly supports the rebasing of the EU ETS cap to reflect actual emissions at the end of Phase 3. Without this the scheme is likely to fail against its main goal of securing adequate cost effective abatement. Here we outline the project...
A tighter cap grows the funds

A tighter cap grows the funds

4 November 2016 The European Parliament ENVI Committee is considering aligning the EU Emissions Trading System cap for Phase 4 with actual emissions in 2020. This will significantly increase the value of the EU ETS funds available to support lower income Member States...

Puncturing the waterbed myth

26 October 2016 This report looks at whether additional actions to reduce emissions lead to net emissions reductions over time in the EU Emissions Trading System. The argument that total emissions are always equal to a fixed cap is sometimes called the “waterbed...