ETS scope and national targets in a post 2030-climate architecture

The study analyses possible options for the future scope of the ETS, including in synergy with national climate targets. It assesses the consequences of different policy choices both for the effective functioning of the carbon pricing system and for reaching ambitious 2040 climate targets, with dedicated focus also on governance options for carbon removals. It provides deep-dive recommendations for the revision of the EU ETS 1 and 2 and the overlap with different design options for national targets in light of the 2040 target, underlining loopholes and strengths of the different policy options and their contribution to reaching EU climate goals.