THE COMMISSION PROPOSAL ON THE ETS REVIEW: A COOL-HEADED ASSESSMENT

This paper takes stock of ERCST activities in preparation of the 2021 ETS review and puts forward an analysis of the July 14 Commission proposal. The analysis covers the topics that have been at the core of the discussion leading to the publication of the proposal.

• The general ambition of the revised ETS, – including the new target, LRF, rebase and MSR parameters
• The new free allocation regime and its relationship with CBAM
• The new ETS for transport and buildings
• The new rules governing the use of ETS revenues.