Evaluation and further development of the EU-ETS in the context of the amendment of the ETS Directive and the European Green Deal with an economic focus

The aim of the project is to support UBA/DEHSt as the responsible agency and the BMU as the lead department flexibly and dynamically during the political processes on relevant topics with scientific expertise and, in particular, economic analyses. Existing preliminary work is to be supplemented in a meaningful way and accents are to be set on selected issues in the political and scientific discourse.

In particular, the project is dedicated to quantitative and qualitative analyses of the design and implementation of the EU Fuel Emissions Trading Scheme (ETS II), as well as its social and distributional effects and the transition from the national fuel ETS to the ETS II.

In addition, the economic effects of the reform of the EU ETS (ETS I) on industry and interactions with other instruments for the decarbonization of industry are examined. This also includes the investigation of upstream emissions from natural gas production.

Furthermore, we address the question of the 'endgame' in ETS I, i.e. the development of supply and demand up to the year 2040, its market impact, as well as the inclusion of negative emissions and the possible inclusion of other sectors, such as agriculture.