The 2040 homestretch Enhancing EU climate action before and after 2030 - the role of the EU ETS and carbon removals

Carbon Market Watch advocates for a legally binding EU target of over 90% gross emissions cuts by 2040 to achieve domestic net zero. The organization argues for 'turbo charging' the EU ETS by increasing linear reduction factors, phasing out free allowances by 2030 in favor of the Carbon Border Adjustment Mechanism (CBAM), and keeping carbon removals strictly separate from the ETS to avoid offsetting and ensure deep decarbonization. It also calls for the expansion of the ETS to full scope for aviation and shipping and the use of auctioning revenues for transparent climate projects.

• Carbon Market Watch supports a legally binding target for the EU to achieve gross emissions cuts of more than 90% compared to 1990 levels to reach domestic net zero emissions by 2040.
• The organization argues that the 'Fit for 55' package is insufficient and should be upgraded to 'Fit for 65' to align with scientific needs for gross cuts of at least 65% by 2030.
• Carbon Market Watch strongly opposes integrating carbon removals into the EU ETS or Effort Sharing Regulation (ESR), arguing that removals should have separate targets to prevent them from being used to offset emissions and deter decarbonization.
• The document recommends the full phase-out of free emission allowances under the EU ETS by 2030, proposing that the Carbon Border Adjustment Mechanism (CBAM) serve as the sole carbon leakage protection tool.
• To achieve the 2040 target, the organization suggests increasing the linear reduction factors (LRF) of the EU ETS and strengthening the Market Stability Reserve (MSR) by permanently removing excess units above 400 million allowances.
• The organization calls for the EU ETS to be expanded to 'full scope' for aviation and shipping, including all greenhouse gas emissions for incoming and outgoing voyages and flights, and specifically including non-CO2 impacts for aviation.

APA

Carbon Market Watch (2023). The 2040 homestretch Enhancing EU climate action before and after 2030 - the role of the EU ETS and carbon removals. https://carbonmarketwatch.org/wp-content/uploads/2023/06/CMW-Position-paper-input-to-EC-2040-target-consultation.pdf

Chicago

Carbon Market Watch. The 2040 homestretch Enhancing EU climate action before and after 2030 - the role of the EU ETS and carbon removals. 2023. https://carbonmarketwatch.org/wp-content/uploads/2023/06/CMW-Position-paper-input-to-EC-2040-target-consultation.pdf.

Wikipedia

{{cite press release |author=Carbon Market Watch |title=The 2040 homestretch Enhancing EU climate action before and after 2030 - the role of the EU ETS and carbon removals |date=June 2023 |url=https://carbonmarketwatch.org/wp-content/uploads/2023/06/CMW-Position-paper-input-to-EC-2040-target-consultation.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{carbonmarketwatch20232040, author = {{Carbon Market Watch}}, title = {{The 2040 homestretch Enhancing EU climate action before and after 2030 - the role of the EU ETS and carbon removals}}, publisher = {Carbon Market Watch}, year = {2023}, month = jun, url = {https://carbonmarketwatch.org/wp-content/uploads/2023/06/CMW-Position-paper-input-to-EC-2040-target-consultation.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }