Why including road transport in the EU carbon market won’t cut pollution

The European Commission is considering including transport (and residential and commercial buildings) in the EU's carbon market, the emissions trading system (ETS) as a means of accelerating emissions reductions in these sectors. In this study, commissioned by the European Climate Foundation, Cambridge Econometrics has explored the likely impact of doing this. The analysis finds that inclusion within the ETS would not lead to significant emissions reductions in road transport and would shift the climate and cost burdens to the heavy industry and power sectors for virtually no environmental gain on the road.