This policy brief provides an overview of the proposals for the ETS-2 covering road transport and buildings. The amendments and guidance by the European Parliament and the Council are assessed and compared to the proposal by the European Commission. In addition, we provide recommendations for each assessed issue to enhance the effectiveness of the ETS while trying to minimise practical obstacles which would impede its introduction.
The main objective of this study is to assess as reliably as possible whether the emission reduction target for 2030 can be achieved or exceeded, taking into account the corresponding uncertainties. The analysis is carried out for different options for cap and Market Stability Reserve (MSR) provisions. Chapter 2 discusses a range of baseline emission trends. Chapter 3.1 discusses the current legislative proposals for adjusting the cap of the EU ETS in the context of the new emission reduction target of 55% for the total greenhouse gas emissions of the EU 27.
