Strengthening the European Union emissons trading scheme and raising climate ambition

The European Union Emissions Trading Scheme (EU ETS) is a central pillar of EU climate policy and has developed over the years into a model scheme for a number of corresponding emissions trading schemes internationally (e.g. in California, Australia, South Korea and China). Against the background of significantly falling prices for emission allowances, a number of measures are currently being discussed for adapting the EU ETS so that it can also fulfil its intended role in the long term. Oeko-Institut‘s report examines the reasons for the current surplus of emission allowances and analyses different options for reducing this surplus, also with a view to expected price effects on the carbon market.