EU looks to strengthen Emissions Trading System

Scheme will undergo further reforms this summer as part of increased EU ambition to reach net zero by 2050

This summer will see the start of another round of regulatory reform of the EU Emissions Trading System (EU ETS). The scheme sets a cap on the emissions that can be produced by the bloc’s largest-emitting sectors—power generation and industry. It issues a set number of EU allowances (EUAs) for emissions that can then be traded between firms. Although the ETS parameters were revised as recently as 2018 in preparation for the start of the market’s fourth phase (2021-30) this year, the advent of the EU Green Deal requires further adjustments to bring the number of EUAs circulating in line with the bloc’s increased climate ambition. 65pc – Expected reduction target for revised ETS The 20