EU ETS key policy and advocacy milestones

The document outlines a detailed schedule of EU ETS and CBAM milestones from 2024 to 2034. Key developments include a shrinking emissions cap, the phase-out of free allowances for aviation, the gradual integration of shipping and municipal waste incineration, and the phased implementation of CBAM. It also details the rollout of the ETS for buildings and road transport (ETS2) and the associated Social Climate Fund, alongside various European Commission reviews of the ETS Directive and Market Stability Reserve.

• The EU ETS emissions cap is decreasing annually, with a linear reduction factor of 4.3% from 2024 to 2027, increasing to 4.4% annually between 2028 and 2031.
• Free allowances for the aviation sector are being phased out, with a 25% reduction in 2024, a 50% reduction in 2025, and a total elimination by the start of 2026, except for 25 million allowances for non-fossil aviation fuels and the innovation fund.
• The Carbon Border Adjustment Mechanism (CBAM) will undergo a phased implementation from 2026 to 2034, with the phase-in/phase-out of free allowances for CBAM sectors increasing from 2.5% in 2026 to 100% by 2034.
• The ETS for buildings and road transport (ETS2) will have an initial annual linear reduction factor of 5.1% from 2024 to 2027, rising to 5.38% from 2028 to 2031, with emissions pricing starting in 2027 subject to a soft pricing ceiling of €45 a tonne.
• The Social Climate Fund is scheduled to launch in 2026 with a target of raising up to €86.7 billion, requiring member states to submit final national social climate plans by 30 June 2025.

APA

Fischer, M. (2024). EU ETS key policy and advocacy milestones. Carbon Market Watch. https://carbonmarketwatch.org/2024/04/22/eu-ets-key-policy-and-advocacy-milestones/

Chicago

Fischer, Martin. EU ETS key policy and advocacy milestones. Carbon Market Watch, 2024. https://carbonmarketwatch.org/2024/04/22/eu-ets-key-policy-and-advocacy-milestones/.

Wikipedia

{{cite report |last1=Fischer |first1=Martin |title=EU ETS key policy and advocacy milestones |publisher=Carbon Market Watch |date=22 April 2024 |url=https://carbonmarketwatch.org/2024/04/22/eu-ets-key-policy-and-advocacy-milestones/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fischer2024ets, author = {Fischer, Martin}, title = {{EU ETS key policy and advocacy milestones}}, institution = {Carbon Market Watch}, year = {2024}, month = apr, url = {https://carbonmarketwatch.org/2024/04/22/eu-ets-key-policy-and-advocacy-milestones/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }