CAN Europe made a submission on the European Commission’s Consultation on the EU-ETS reform post 2020.
To date the EU ETS has failed to deliver on its objectives and has not been adapted to respond to the significant macro-economic and technological changes we have seen over the last few years. Only if the EU ETS is reformed immediately and significantly can it be in line with the EU’s long-term objective of 80 to 95% emission reductions by 2050. This requires permanently addressing the current surplus in emission allowances. The linear reduction factor should be raised beyond 2.6% after 2020 to achieve cost effective emission reductions in the ETS sectors. We furthermore advocate for full auctioning as it is the most cost-efficient, simplest, fairest, and most transparent way to allocate emission allowances.