Our topics

We work on decarbonisation policies, leveraging our core expertise on carbon markets, data analysis and industrial decarbonisation.

EU Emissions Trading System (ETS)

We analyse EU ETS data to propose concrete policies to reduce emissions and advocate for efficient carbon pricing mechanisms.

Screenshot of the EU ETS Dashboard.

We developed an EU ETS dashboard to navigate the emissions data covered by the EU ETS at various granularity levels and their evolution over time. Click here to try it now. 

Carbon Border Adjustment Mechanism (CBAM)

We advocate for a strong CBAM to phase out the allocation of free emission allowances, address carbon leakage, and accelerate global climate action.

The CBAM dividend for Namibia and Ghana

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.

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Industry decarbonisation

We research the potential of electrification, circularity, and innovative technologies to decarbonise hard-to-abate sectors like steel, aluminium, and cement.

Screenshot of the EU ETS Dashboard.

We developed a Marginal Abatement Cost curve to present the cost and the decarbonisation potential of different abatement measures or technologies. Click here to try it now.

Carbon Dioxide Removal (CDR)

We conduct research on CDR to ensure those technologies are incentivised properly, and help – rather than hinder – the EU on its path to climate neutrality.

Simulating CDR in the EU ETS: The Risks of Premature Integration

Simulating CDR in the EU ETS: The Risks of Premature Integration

Sandbag has developed an ‘ETS + CDR simulator’ to help visualise and explore the impact that CDR integration could have on the ETS, assess the demand it could create for CDR, and highlight the potential consequences of this demand. This report uses the simulator to explore how different integration pathways could affect emissions reductions, carbon prices, and potentially lead to negative externalities.

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Climate financing

We analyse EU funding initiatives driving climate innovation and industrial decarbonisation. Ensuring revenues from the EU ETS and CBAM are well spent.

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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