CMW has responded to a public consultation and questionnaire on the review of the Emissions Trading System for emissions from the electricity and heat generation, industrial manufacturing and aviation sectors (ETS1).
• Get rid of free allocation and indirect cost compensation after 2030 if no proof of carbon leakage is provided
• Industrial decarbonisation support should always ensure long-term emission cuts with clawback clauses for non-compliance
• Extend the scope to cover all departing flights as a first step towards covering all departing and incoming flights under carbon pricing.
• Extend the scope to cover emissions from smaller ships
• Maintain the Market Stability Reserve: adjust the thresholds downward, and keep the intake rate at 24%.
• Keep carbon removals out of the ETS
• Include Municipal Waste Incinerators in the EU ETS
