Raising the climate policy ambition of the European Union: Reforming the EU Emissions Trading System

The adjustment of the European Union Emissions Trading System (EU ETS) plays a key role with regard to the new climate policy ambition of the European Union. Two different emission reduction targets for the EU ETS (65% and 70% below the base level of 2005) were analysed, combining changes of the LRF and different rebasing options at different starting points in the 2023–2026 period. The earlier the reform takes place (e.g. in 2023) and the more significant the rebasing is, the more consistent the cap reform is with a view to cumulative emissions, a gradual contraction of the cap after the reform and the necessary adjustments of the MSR.

https://www.wwf.de/fileadmin/fm-wwf/Publikationen-PDF/Klima/WWF-Empfehlungen-Reform-des-EU-Emmisionshandels.pdf