Towards a global carbon market: risks of linking the EU ETS to other carbon markets

The policy brief examines the implications of linking the EU ETS with external carbon markets, noting that while it may increase cost-efficiency, it risks undermining the EU's 2030 domestic emissions reduction target of 40%. It highlights the lack of transparency and European Parliament involvement in current negotiations and recommends that any linking be accompanied by higher emission targets and robust safeguards, such as the exclusion of international offsets.

• Linking carbon markets can improve cost-efficiency by expanding the pool of available emissions reductions, potentially enabling countries to raise their climate ambitions. However, poor design could lead to lower overall emissions abatement, reduced domestic investment, and a loss of public funds.
• There is a risk that linking the EU ETS with foreign schemes would allow foreign credits and allowances into the EU market, which could jeopardize the EU's goal to achieve at least 40% emissions reductions domestically by 2030 compared to 1990 levels.
• The European Commission intended to initiate an agreement to link the EU ETS with the Swiss carbon market in the first half of 2015, marking the first time the EU ETS would be linked to a market outside EU jurisdiction.
• Current linking negotiations lack transparency and democratic oversight, as rules do not permit the European Parliament to participate or provide public access to essential documents.

APA

Carbon Market Watch (2015). Towards a global carbon market: risks of linking the EU ETS to other carbon markets. https://carbonmarketwatch.org/publications/towards-a-global-carbon-market-risks-of-linking-the-eu-ets-to-other-carbon-markets/

Chicago

Carbon Market Watch. Towards a global carbon market: risks of linking the EU ETS to other carbon markets. 2015. https://carbonmarketwatch.org/publications/towards-a-global-carbon-market-risks-of-linking-the-eu-ets-to-other-carbon-markets/.

Wikipedia

{{cite report |author=Carbon Market Watch |title=Towards a global carbon market: risks of linking the EU ETS to other carbon markets |date=5 May 2015 |url=https://carbonmarketwatch.org/publications/towards-a-global-carbon-market-risks-of-linking-the-eu-ets-to-other-carbon-markets/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{carbonmarketwatch2015towards, author = {{Carbon Market Watch}}, title = {{Towards a global carbon market: risks of linking the EU ETS to other carbon markets}}, institution = {Carbon Market Watch}, year = {2015}, month = may, url = {https://carbonmarketwatch.org/publications/towards-a-global-carbon-market-risks-of-linking-the-eu-ets-to-other-carbon-markets/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }