Response to consultation on updating the EU Emissions Trading System

This document provides IOGP’s response to the EU public consultation (questionnaire) on updating the EU Emissions Trading System (ETS).

Background

The EU ETS is a cap-and-trade system that currently governs 41% of the EU’s emissions, covering power and heat generation, energy-intensive industrial sectors and aviation within the European Economic Area and to/from Switzerland. The Communication on stepping up the EU’s 2030 climate ambition explicitly indicates the need to revise the EU ETS in light of the aforementioned more ambitious target.

Context

“This public consultation invites citizens and organisations to contribute to the assessment of how to translate the increased EU 2030 emission reduction ambition into an upgraded, more ambitious, workable and realistic ETS. The results of the consultation will inform the Impact Assessment, accompanying the Commission proposal for revising the ETS.”

Overview

The questionnaire is structured as follows:

• Information about the stakeholder
• A. The Contribution of EU ETS to the overall climate ambition for 2030
• B. Addressing the risk of carbon leakage
• C. An increasing role for emissions trading
• D. Extension to Maritime greenhouse gas emissions
• E. Market stability
• F. Revenues
• G. Low-carbon support mechanisms
• H. Concluding questions