A new report by Sandbag says that the EU ETS will now drive less than zero net abatement over 2008-2020, and now threatens to cancel out nearly 700 million tonnes of abatement delivered by other policies in the Climate and Energy package.
The environmental effectiveness of the scheme has also been further compromised by as many as a billion non-additional offset credits surrendered before they could be banned by new environmental regulations.
Sandbag’s new report find that, in its current state, the EU ETS will drive no net abatement out until after 2020, and will instead cancel out some 700 million tonnes of emissions reductions from other policiesin the Climate and Energy package these up as surpluses allowances which can be used against emissions after 2020.
Further one billion surplus allowances have already been added to the scheme by offset projects which are unlikely to have delivered real emissions reductions, further compromising the environmental effectiveness of the cap.
Sandbag propose that the backloading vote must be a stepping stone to a structural reform that ensures a minimum level of batement is driven by the scheme and stops it from undermining other policies and undermining Europe’s offer in the 2015.