A Clean Fit: The Role of the EU ETS in the Energy Policy Landscape

The policy brief asserts that while the EU ETS is necessary, it is insufficient on its own to achieve a net-zero economy due to market barriers, low carbon prices, and a lack of focus on energy security and air quality. It advocates for a complementary policy package including energy efficiency measures, renewable policies, and direct regulation to avoid high-carbon infrastructure lock-in and ensure synergy between the EU ETS and the Clean Energy Package.

• The EU ETS alone cannot achieve a transition to a net-zero economy because carbon pricing cannot address market imperfections like split incentives between tenants and owners, nor does it cover objectives such as air quality, affordability, and energy security.
• Current EU ETS prices are too low to align with Paris climate goals, creating a risk that high-carbon infrastructure will be locked in unless additional policies are implemented quickly.
• To effectively limit emissions, the EU ETS requires complementary tools: energy efficiency measures to fix market imperfections, renewable policies for new mitigation options, and direct regulation to prevent high-emissions infrastructure lock-in.

APA

Carbon Market Watch (2017). A Clean Fit: The Role of the EU ETS in the Energy Policy Landscape. https://carbonmarketwatch.org/publications/policy-brief-a-clean-fit-the-role-of-the-eu-ets-in-the-energy-policy-landscape/

Chicago

Carbon Market Watch. A Clean Fit: The Role of the EU ETS in the Energy Policy Landscape. 2017. https://carbonmarketwatch.org/publications/policy-brief-a-clean-fit-the-role-of-the-eu-ets-in-the-energy-policy-landscape/.

Wikipedia

{{cite report |author=Carbon Market Watch |title=A Clean Fit: The Role of the EU ETS in the Energy Policy Landscape |date=5 June 2017 |url=https://carbonmarketwatch.org/publications/policy-brief-a-clean-fit-the-role-of-the-eu-ets-in-the-energy-policy-landscape/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{carbonmarketwatch2017clean, author = {{Carbon Market Watch}}, title = {{A Clean Fit: The Role of the EU ETS in the Energy Policy Landscape}}, institution = {Carbon Market Watch}, year = {2017}, month = jun, url = {https://carbonmarketwatch.org/publications/policy-brief-a-clean-fit-the-role-of-the-eu-ets-in-the-energy-policy-landscape/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }