Why bringing transport and buildings under the EU carbon market is not a good idea

Carbon Market Watch argues that including road transport and buildings in the EU carbon market would fail to reduce emissions and instead provide an excuse for inaction. For transport, the author suggests CO2 standards for new vehicles are more effective, while for buildings, they advocate for energy efficiency standards and deep renovations. The document warns that adding these sectors would risk market instability by increasing the number of pollution permits and potentially undermining existing regulations.

• Including road transport in the EU carbon market would likely result in only a minor price increase at fuel pumps, which is insufficient to reduce driving and would allow the sector to buy permits rather than lower emissions.
• Applying a carbon price to the buildings sector is unlikely to decrease demand for heating fuel and would not overcome barriers to large-scale energy-saving investments, while disproportionately impacting low-income families.
• Integrating buildings and transport into the carbon market could destabilize the system due to the volatile nature of building emissions and the potential for an increased number of pollution permits amid an existing oversupply.
• The author recommends focusing on CO2 standards for new vehicles, strengthening energy efficiency standards, and promoting deep renovations of buildings as more effective alternatives to a carbon price for these sectors.

APA

Amaral, K. (2020). Why bringing transport and buildings under the EU carbon market is not a good idea. Carbon Market Watch. https://carbonmarketwatch.org/2020/09/24/why-bringing-transport-and-buildings-under-the-eu-carbon-market-is-not-a-good-idea/

Chicago

Amaral, Kaisa. Why bringing transport and buildings under the EU carbon market is not a good idea. Carbon Market Watch, 2020. https://carbonmarketwatch.org/2020/09/24/why-bringing-transport-and-buildings-under-the-eu-carbon-market-is-not-a-good-idea/.

Wikipedia

{{cite press release |last1=Amaral |first1=Kaisa |title=Why bringing transport and buildings under the EU carbon market is not a good idea |publisher=Carbon Market Watch |date=24 September 2020 |url=https://carbonmarketwatch.org/2020/09/24/why-bringing-transport-and-buildings-under-the-eu-carbon-market-is-not-a-good-idea/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{amaral2020why, author = {Amaral, Kaisa}, title = {{Why bringing transport and buildings under the EU carbon market is not a good idea}}, publisher = {Carbon Market Watch}, year = {2020}, month = sep, url = {https://carbonmarketwatch.org/2020/09/24/why-bringing-transport-and-buildings-under-the-eu-carbon-market-is-not-a-good-idea/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }