EU carbon pricing ‘not main driver’ of emissions reductions

While the EU is on course to meet its targets to reduce greenhouse gas emissions from industry, its emissions trading scheme has not been the “primary driver” in the sectors that it covers, according to a group of energy economists

A new report on the state of the ETS indicates that although reforms agreed in 2017 to address an oversupply in emissions allowances are boosting the EU carbon price, the rise has not been sufficient to encourage investment in emerging low carbon technologies.

Brexit remains a considerable source of uncertainty for the future trajectory of the carbon market, says the report, which was published by the European Roundtable on Climate Change and Sustainable Transition.

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