This report provides an overview of the positions adopted by the EU institutions on the revision of the EU ETS. Thanks to a quantitative model developed by Climact, the authors were able to make a qualitative and a quantitative comparative assessment of the positions and provide sound recommendations for the final agreement based on robust numbers and scenarios. The first section of the report explores in detail the overall positions of the EU institutions and provides general recommendations for the revision of the EU ETS at European level.


Key recommendations

• Increase the 2030 ETS emission reduction target to at least 64%.

• Cease free pollution permits and replacing this system with the CBAM to incentivise heavy industry to reduce their emissions by 2026.

• Regulate strong conditionalities to the allocation of free pollution permits.

• Ensure enough resources for the Innovation Fund to channel into zero-carbon and renewable energy projects as soon as possible.

• Implement strict criteria for accessing the Modernisation Fund for supporting the modernisation and decarbonisation of the power sector in lower-income EU member states.

• Guarantee that 100% of ETS auctioning revenue is used for climate mitigation and adaptation.

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LifeETX is implemented by a consortium of 10 NGOs working at national and European level