Briefing

Three reasons why road transport in the ETS is a bad idea

September 4, 2014

The EU is currently discussing its climate and energy policy for 2030. As part of these discussions German carmakers have been advocating the inclusion of road transport emissions in the EU Emissions Trading System (ETS). Some countries like Denmark also support the idea, although for different reasons. This briefing explains why transport’s inclusion in the ETS would delay emissions reductions in transport, undermine more effective climate policies for transport, and weaken the ETS and increase costs.

While this paper argues against including road transport in the cross-sector ETS, it does not argue against much more transport-specific forms of credit trading. Europe can draw lessons from Californian policies that allow trading of low-carbon vehicle and fuel credits between vehicle and energy suppliers respectively that truly encourage low-carbon investment and innovation in transport.

Related Articles

View All
Publication

Interactive dashboard: which countries have the greenest tax systems?

T&E Good Tax Guide

Yearly publication analysing and comparing the car taxation systems across 31 countries in Europe.

Press Release

Germany pushes companies towards polluting SUVs instead of electric - new study finds

The tax incentives in Germany to steer companies towards electric cars are amongst the weakest in Europe and three times lower than in France. Poland,...

Briefing

The T&E Good Tax Guide for cars

Are European countries steering drivers to go electric or stick to polluting SUVs?

The T&E Good Tax Guide is a yearly publication (3rd edition) that analyses and compares the car taxation systems across 31 countries in Europe.