Including transport in the ETS: Counterproductive and legally questionable

The EU will conclude discussions on its climate and energy policy for 2030 at a European Council meeting on 23-24 October, 2014. The EU is committed to reducing carbon dioxide (CO2) emissions by 80-95% by 2050 to prevent dangerous climate change. However, this goal is undermined by proposals contained in a leaked draft which allow EU member states to include road transport emissions in the emissions trading scheme (ETS).

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.