An International View on Decisions before the European Parliament on the ETS Post 2020

International researchers advocate for the strengthening of the EU ETS post-2020, emphasizing the need to address structural surpluses and ensure a full carbon price pass-through for basic materials like steel and cement to drive innovation and global policy alignment.

• The authors support measures to address the structural surplus that has undermined the effectiveness of the ETS since the financial crisis, including a strengthened emissions reduction factor, the potential cancellation of surplus, and the full use of the market stability reserve.
• The document argues that a full carbon price pass-through to basic materials, such as cement and steel, is necessary because these materials dominate industrial emissions and current carbon pricing policies struggle to incentivize new product design or production innovation without it.
• To achieve full carbon price pass-through and avoid protectionism, the authors suggest combining the inclusion of imports of cement and other less trade-intensive materials into the EU ETS with a shift from free allocation to full auctioning of emission allowances based on a 'best available technology benchmark'.
• Drawing on experiences from the Chinese and Korean power sectors, the authors suggest that a consumption charge at the carbon price and benchmark used for primary production can reinstate a carbon price signal when it is muted by free allocations for carbon leakage protection.

APA

Burtraw, D., Gaskins, D., Jotzo, F., Lim, J.-S., Roy, J., Winkler, H., & Wu, L. (2017). An International View on Decisions before the European Parliament on the ETS Post 2020. Climate Strategies. https://climatestrategies.org/wp-content/uploads/2017/02/International-View-on-EU-ETS-post-2020-1.pdf

Chicago

Burtraw, Dallas, Darius Gaskins, Frank Jotzo, Jong-Soo Lim, Joyashree Roy, Harald Winkler, and Libu Wu. An International View on Decisions before the European Parliament on the ETS Post 2020. Climate Strategies, 2017. https://climatestrategies.org/wp-content/uploads/2017/02/International-View-on-EU-ETS-post-2020-1.pdf.

Wikipedia

{{cite press release |last1=Burtraw |first1=Dallas |last2=Gaskins |first2=Darius |last3=Jotzo |first3=Frank |last4=Lim |first4=Jong-Soo |last5=Roy |first5=Joyashree |last6=Winkler |first6=Harald |last7=Wu |first7=Libu |title=An International View on Decisions before the European Parliament on the ETS Post 2020 |publisher=Climate Strategies |date=14 February 2017 |url=https://climatestrategies.org/wp-content/uploads/2017/02/International-View-on-EU-ETS-post-2020-1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{burtraw2017international, author = {Burtraw, Dallas and Gaskins, Darius and Jotzo, Frank and Lim, Jong-Soo and Roy, Joyashree and Winkler, Harald and Wu, Libu}, title = {{An International View on Decisions before the European Parliament on the ETS Post 2020}}, publisher = {Climate Strategies}, year = {2017}, month = feb, url = {https://climatestrategies.org/wp-content/uploads/2017/02/International-View-on-EU-ETS-post-2020-1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }