Environmental group calls for stronger EU ETS action
The EU should increase its ambition on reducing emissions by 2020 in order to avoid stalling progress in the next decade, according to Sandbag. A report issued by the group on Monday 3 August said that, under current policies, domestic economy-wide emissions could fall by as much as 29% by 2020, resulting in large surpluses within the EU Emissions Trading Scheme (EU ETS). It recommended cancelling 1.5bn allowances from Phase III of the scheme, bringing the EU to a 25% emissions target for 2020––above the 20% target already established. The report suggested that a surplus of 2.1bn allowances will have accumulated within the EU ETS by that year––providing a “buffer” of roughly 600mn allowances that could be returned to the market if allowances became scarce.