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
Report

T&E's annual overview of key transport trends, challenges and achievements

State of Transport 2025

European transport is still heavily reliant on fossil fuels, but electric vehicles are on the charge as the EU’s green policies start to bite. Powerin...

Press Release

Europe set to save 20 million tonnes of CO2 this year thanks to switch to EVs

State of European Transport report shows that transport emissions are starting to fall as the EV market grows, but carbon savings are being undermined...

Press Release

EU Auto Plan is a major concession to industry – it must be the last

T&E reaction to Automotive Plan: Positive steps on fleets, but the weakening of CO₂ targets and vague support for battery production will see Europe f...