...a legislative proposal to revise the Market Stability Reserve (MSR), the mechanism that adjusts the supply of allowances in the EU ETS to stabilise the carbon market by removing or releasing permits depending on market conditions. The Commission opened a public consultation on updated ETS benchmarks for 2026–2030 free allocation, including revised emissions intensity values and fallback benchmarks used to determine the allocation of free allowances. Further Reading Should negative emissions be included in the EU ETS? by Eve Tamme Review of the EU ETS, European Parliament briefing, 2023 EU ETS Key Policy and Advocacy Milestones, Emission Trading Extra, 2024...
...progress on meaningful CDR targets in light of our findings. We provide further details on the data sources, underlying calculations, and the sensitivity tests used for investigating the importance of specific model parameters in the Annexe at the end of this document. 2. Potential frameworks for setting fair CDR targets 2.1 Defining targets based on the role of CDR Reaching our net-zero goals Understanding where removal methods are most applicable may help inform target setting by aligning CDR deployment with broader climate objectives. As mentioned above, CDR is considered a crucial strategy for achieving net-zero targets by neutralising residual emissions...
...be they existing or new, CDR-specific, compliance regimes, can vary depending on the political context, policy goals, and emissions profile, among other factors. How could CDR be integrated into ETSs? There are different degrees to which CDR could be integrated into ETSs: fully, partially or indirectly. CDR could also have its own compliance regime, separate from emissions reduction requirements, rather than being directly integrated into an ETS. If CDR is fully integrated into an ETS, that means one tonne of CDR would be fungible with, or equivalent to, one tonne of reduced emissions. This approach has raised concerns, since emissions...
...delay the long-term planning and policy support needed to scale carbon removals by 2050. How is target setting addressed in EU policy? The European Climate Law is the anchor of EU climate policy. It sets binding targets of at least a 55% net greenhouse gas emissions reduction by 2030 (compared to 1990 levels) and climate neutrality by 2050. It also sets a 90% net reduction target by 2040. Because all three targets are framed in net terms, emissions reductions and carbon removals contribute to a single headline objective. This structure is particularly relevant for the 2040 target, which confirms a...
...2026 to 2030). 2. Sectoral flexibilities: ETS and ESR: Nine member states’ allowances (with national reduction targets above the EU average and their cost-efficient reduction potential) may make use of a limited percentage of ETS emissions to reach their ESR reduction targets; LULUCF and ESR: Countries may use a constrained number of net carbon removals in the LULUCF sector to meet their emission reduction targets under the ETS. Under the proposed amendment of the ESR, the total net carbon removals which may be considered for reaching ESR targets, may not exceed 225 Mt CO2e across all member states. Previously the...
