Carbon Market Watch's response to the public consultation on the EU Emissions Trading System (EU ETS) review

Carbon Market Watch recommends strengthening the EU ETS by increasing the Linear Reduction Factor to 5.8% (or 3.1% with a cap reduction), raising the Market Stability Reserve intake rate to 36%, and ending free allowances for aviation and energy-intensive industries. The organization advocates for the inclusion of international maritime transport and waste incineration, while opposing the inclusion of road transport, buildings, and Carbon Dioxide Removal (CDR) credits.

• Carbon Market Watch proposes accelerating emission reductions by increasing the Linear Reduction Factor (LRF) to 5.8% starting in 2023, or to 3.1% if paired with a one-off cap reduction of 450 million allowances.
• To address the market surplus, the organization recommends increasing the Market Stability Reserve (MSR) intake rate to 36% from 2024, implementing declining thresholds, and automatically cancelling allowances held in the reserve for over three years.
• The response argues for the removal of free allowances for the aviation sector and energy-intensive industries, and suggests that 100% of auctioning revenues be directed toward international climate finance, just transition, industrial innovation, and further climate action.
• Regarding scope, the organization recommends including waste incineration and international maritime transport (if global action is absent), but explicitly advises against including road transport, buildings, or Carbon Dioxide Removal (CDR) credits.

APA

Carbon Market Watch (2021). Carbon Market Watch's response to the public consultation on the EU Emissions Trading System (EU ETS) review. https://carbonmarketwatch.org/publications/carbon-market-watchs-response-to-the-public-consultation-on-the-eu-emissions-trading-system-eu-ets-review/

Chicago

Carbon Market Watch. Carbon Market Watch's response to the public consultation on the EU Emissions Trading System (EU ETS) review. 2021. https://carbonmarketwatch.org/publications/carbon-market-watchs-response-to-the-public-consultation-on-the-eu-emissions-trading-system-eu-ets-review/.

Wikipedia

{{cite press release |author=Carbon Market Watch |title=Carbon Market Watch's response to the public consultation on the EU Emissions Trading System (EU ETS) review |date=12 February 2021 |url=https://carbonmarketwatch.org/publications/carbon-market-watchs-response-to-the-public-consultation-on-the-eu-emissions-trading-system-eu-ets-review/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{carbonmarketwatch2021carbon, author = {{Carbon Market Watch}}, title = {{Carbon Market Watch's response to the public consultation on the EU Emissions Trading System (EU ETS) review}}, publisher = {Carbon Market Watch}, year = {2021}, month = feb, url = {https://carbonmarketwatch.org/publications/carbon-market-watchs-response-to-the-public-consultation-on-the-eu-emissions-trading-system-eu-ets-review/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }