Ahead of the EU 2030 climate and energy package discussions at the European Council meeting on 23-24 October, German carmakers and Denmark have been lobbying for the inclusion of road transport emissions in the EU Emissions Trading System (ETS). We think this proposal would undermine the EU's goal of reducing CO2 emissions by 80-95% by 2050 to prevent dangerous climate change. Read the full rationale behind our thinking.
Legal analysis highlights how the proposals are contrary to the requirements of the current ETS Directive. Furthermore, new research by Cambridge Econometrics illustrates why including transport in the ETS would be counterproductive; compared with a scenario of ambitious post-2020 vehicle CO2 standards there would be 160,000 fewer jobs, and €22/77 billion higher oil imports in 2030/2050. Climate policy, as well as transport emissions reductions, would stall.