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This briefing summarises a legal analysis highlighting how the proposals are contrary to the requirements of the current ETS Directive. It also covers new research, by Cambridge Econometrics, illustrating 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.