Pressure group calls for tighter ETS caps

A recent report from the climate NGO Sandbag urges the EU to tighten caps on energy and industrial emissions for 2020 to ensure that greater cuts are achieved. The NGO claims that a 30% cut would be cheaper than the originally planned 21% reduction and moreover states that in the event of a global deal in Copenhagen, a cut of 40% would be easily achievable.

Sandbag argues that lobbying by industry has resulted in an over-allocation of tradable permits for Phase II of the ETSⁱ and claims that the massive subsidy this entails will end up being paid by consumers and taxpayers as costs are passed on to them. The NGO also claims that the ETS scheme offers no incentives for emission reductions within the EU between now and 2015.

CEMBUREAU believes, however, that caps should only be tightened if an appropriate international agreement has been reached. Such an agreement must ensure that comparable constraints are imposed on countries not subject to the EU-ETS, in order to provide a level playing field for all. Any agreement would have to involve countries that represent a critical mass of production, and introduce equivalent CO2 emission targets with equivalent effects by 2020 at the latest in order to be effective.