‘Human Stories’ series demonstrates promising yet unfulfilled potential of EU Emissions Trading System

Examples of climate funding being put to good use in Greece, Portugal and Belgium suggest how revenue from the EU Emissions Trading System (EU ETS) can be better used to enhance climate action. This potential can be further boosted by eliminating the freebies awarded to the wealthiest polluters.

Polluting for free during a climate crisis: Update of the EU ETS free allocation rules

A large part of heavy industry carbon emissions is exempted from ETS obligations. The allocation system of free emissions allowances was designed to shield European heavy industries from the purported risk of “carbon leakage”, the alleged risk that industries will relocate their production outside of the EU to countries or regions with more lenient carbon emission policies.