Latest news with #EmissionsTradingSystem
Scoop
6 days ago
- Business
- Scoop
Sky Polluters, Time To Chip In! Citizens, Time To Cash In!
In 2026 the European Commission is set to revise its flagship climate policy, the Emissions Trading System (EU ETS). Currently, only 7% of the aviation industry's climate impact is priced by the EU's carbon market. However, successive public surveys show that there is strong demand from EU citizens for bolstered climate action, and for airlines to start paying their fair share. A new study by independent environmental consultancy Carbone 4, commissioned by Carbon Market Watch, simulates four potential strategies for how the EU might revise its carbon market rules in 2026 to foster further emission reductions and raise funds to enhance the bloc's climate policies covering the aviation sector and beyond. The untapped revenue of aviation pollution By confronting the aviation industry's full climate impact, our research shows that by applying the polluter-pays principle and expanding carbon pricing to non-covered aviation climate impacts, there could be a tenfold increase in EU ETS revenues between 2025 and 2040 from the aviation sector. Since 2012, only flights departing from or arriving at airports within the European Economic Area are subject to today's lax emissions charges. The report reveals that expanding the policy to price the pollution of all departing flights would at least double revenue generated, and as much as four times more should the EU reverse its controversial 'Stop the clock' decision. Furthermore, if non-CO2 aviation emissions - such as contrails or nitrous oxide, which can have a climate-warming effect three times higher than CO2 - were taken into consideration, this would boost revenue further. Similarly, 67% of the emissions from private jets escape the attention of the EU ETS. Removing existing exemptions would unlock significant funding for decarbonisation from this indulgent form of travel. 'It is scandalous that the aviation industry has skirted paying for its climate impacts for so long,' says Bastien Bonnet-Cantalloube, CMW's policy expert on the decarbonisation of aviation. 'The upcoming EU ETS review can set aviation on a decarbonisation flightpath and generate greater revenue to fund the bloc's climate policies.' Air fair Revenue raised can be returned to source by supporting industry efforts to adopt cleaner fuels, especially by making e-kerosene projects more viable. Proceeds can also be channelled to upgrade the EU's railway infrastructure thus providing a more affordable and cleaner form of transport than can substitute short-haul flights. Crucially, achieving a boost in revenues can help bridge the shortfall in funding for the EU to pay its fair share of the global climate target, which requires a mobilisation of $1.3 trillion by 2035. This should include supporting aviation workers affected by the transition in least developed countries. The time is now for the EU to uphold its climate values and principles. It all starts with charging aviation polluters fairly.
Euractiv
01-08-2025
- Business
- Euractiv
The Brief – 1 August 2025: The Good, the Bad, and the Ugly
Good Friday afternoon, and welcome to the penultimate GBU before Euractiv newsletters have a two-week summer break. Many dear readers will have already swapped desks for deck chairs; others might be en route , joining the throngs on Europe's busiest traffic weekend of the year. The month of mass transit gives many of us a chance to test the limits of free movement – whether impeded by border checks or infrastructure in need of upgrades. Transport Commissioner Apostolos Tzitzikostas warned this week that billions of euros must be spent to ensure the bloc's roads and rail are fit for defence forces. And whether for leisure or strategic purposes, the continent's grand rail vision is losing momentum, held up by a patchwork of regulatory standards, poor cross-border connections, and the high cost of laying new tracks. On top of which, passengers are lured away from the green transport mode by flights that are often much cheaper, and do away with the complicated business of changing between national networks. But for all the convenience it brings, boarding a plane weighs increasingly on our consciences, as our travel choices are one of the main contributors to personal carbon emissions. Those flying within the EU, however, needn't let the burden of climate guilt spoil their vacation: in fact the bloc's Emissions Trading System means that the CO2 cost is already factored into tickets, Niko Kurmayer explains. The system isn't perfect – other pollutants than CO2 are not yet covered – but it goes some way in accounting for a notoriously un-eco travel option. Deal or no deal? The hotly anticipated EU-US trade "deal" that President Trump and President von der Leyen agreed in Scotland last Sunday generated enormous commentary throughout the week. Panned by most EU pundits as capitulation of the highest order, the general revulsion at von der Leyen's bootlicking was widely seen as the abdication of European values, international trade laws, and an outrageous disregard for national sovereignty in matters of defence. Then again, others have pointed to the imperative of avoiding the crushing 30% tariffs that Trump was poised to launch. It could have been worse, they note, and many sectors let out a tentative sigh of relief. If ostentatious obeisance is what it takes to avoid a ruinous trade war, so be it. But the devil's in the lack of detail, and as Thomas Moller-Nielsen writes, it's hard to judge the "biggest trade deal ever' when so many aspects of the agreement remain unknown. Despite Trump's crowing celebrations as if all was done and dusted, this is really just the start of negotiations. And the stakes are high, with key sectors – such as steel and digital markets – the focus of hard-nosed bargaining. With so much still tba, Trump delayed the new tariffs by a week (now due 7 August, rather than today). Let's see where we are next week. Pendulum swings on Gaza Europe's attitude towards Israel grew notably cooler this week, as the blockade on aid deliveries has led to severe starvation in Gaza. Having been extremely hesitant to take action against Israel, the dial is now moving as European leaders face public outcry and more countries announce plans to recognise the Palestinian state. Within the Commission's ranks, executive vice-president Teresa Ribera has been most outspoken as she denounced the EU leadership's inaction over the "catastrophic humanitarian situation" in the Gaza Strip. Former foreign policy chief Josep Borrell went further on Friday, accusing EU leaders of being complicit in the "genocide of Palestinians". But despite expressing 'great concern over the catastrophic humanitarian situation in Gaza,' Germany's Chancellor Friedrich Merz has so far resisted pressure to suspend EU research ties with Israel. Meanwhile, France, Germany and Spain have started airlifting aid into Gaza – though this is far less effective than opening up secure land deliveries. European defence procurement 18 countries have applied for funds under the EU's SAFE programme, which aims to mobilise €150 billion in loans for defence procurement. After initial hesitation (partly because defence spending is a national competence that has historically been beyond the Commission's remit), a total of €127 billion was claimed – a figure that will likely rise once the United Kingdom and others are accounted for. Countries have until November to submit their proposals to Brussels, with breakdowns of what exactly they will do with the loans. Want to get The Good, the Bad, and the Ugly in your inbox? Subscribe to The Brief.
Euractiv
31-07-2025
- Euractiv
The Brief – Leave the shame for your flight to Rome at the gate
Flygskam – the Swedish term for 'flight shame' that was coined in 2017 – has plagued the conscience of frequent flyers since awareness of the environmental impact of aviation broke into the mainstream. With every journey, the mindful traveller must ask: 'How can I justify this cloud of emissions?' The ethical embarrassment has been fanned by a growing awareness of the carbon cost of choices that are often of our own volition. The sense of personal guilt is on the rise – a McKinsey survey noted that 23% of plane passengers felt shame for flying in 2019; by 2023 this had risen to 45%. After all, aviation emits 4% of the world's greenhouse gases each year. But European citizens need not worry. Unbeknownst to the activist class, the EU has long addressed this issue through its landmark carbon budget law – the Emissions Trading System (ETS). When it was created in 2005, Brussels established a long-term CO2 budget for the bloc. In 2012, this quota was extended to flights entering and leaving the EU. However, this limit was swiftly dropped until 2026 because it proved incredibly unpopular with overseas airlines. Thankfully, flights within the bloc remain covered. That means a flight from Brussels to Rome does not cause additional emissions. Instead, they count towards the total emissions budget for the bloc, putting intra-EU flights in competition with other polluters – be it coal power plants in Germany or steel works in Spain. If a greater share of the quota is used by flights, less will be available for other sources of greenhouse gas emissions. Previously, airlines could get their certificates for free (unlike their coal-firing competitors). But as of this year, their freebies have been halved. From 2026 they will have to pay for all that they use. That means the full cost of emitting CO2 by burning kerosene is factored into a ticket from Brussels to Rome. Naturally this prompts airlines to lobby for money, which itself is proof the system works. The next step will be to bring non-CO2 planet warming (trails from planes cause a phenomenon known as radiative forcing, trapping extra heat on our planet) into the aviation equation. Brussels already has a plan for how to do that. "The EU has a plan for monitoring the non-CO2 climate impacts of flying, too, with measurements beginning next year," said Bastien Bonnet-Cantalloube of pressure group Carbon Market Watch. This would have to "be complemented by a strong proposal to foster their actual abatement, like through their inclusion under the ETS in 2027," he cautioned. Flights into and out of the EU may be included in the ETS once more as well then, depending on how much the political climate has shifted since 2012 (this looks less likely). So when your uncle asks on Boxing Day how many times you've flown from Brussels to Berlin, point him to this piece and the indisputable fact that there are no flights cleaner and less harmful than those within the EU. Roundup Whilst Trump was keen to trumpet the "deal" secured with the EU, there is still much to be agreed . 'There's plenty of horse trading still to do,' US Commerce Secretary Howard Lutnick told CNBC on Tuesday. No corks popping – The US will go ahead with a 15% blanket tariff on European wine and spirits from 1 August, despite appeals from the European Commission and key producing countries to spare the sector. Burning a hole in their pocket – Smokers across the EU could soon face steep price hikes of up to €2 per pack under a proposed EU-wide tobacco tax reform – a public health measure that's sparking political pushback in some member states. Across Europe The Swedish government is calling on the EU to freeze its trade deal with Israel in an effort to pressure the country into allowing humanitarian aid into Gaza. 'Using starvation of civilians as a method of warfare constitutes a war crime,' said Foreign Minister Maria Malmer Stenergard. Corporate media drives censorship in Kosovo – With media outlets in Kosovo and the region increasingly concentrated in the hands of major business moguls, journalists say censorship to protect the owners' interests has become 'the norm' Zelenskyy U-turn on anti-corruption grab – Ukrainian President Volodymyr Zelenskyy signed new legislation on Thursday restoring the independence of Ukraine's anti-corruption agencies, reversing changes that had sparked large-scale protests and criticism from the European Union.
Deccan Herald
31-07-2025
- Business
- Deccan Herald
What India can learn from Turkiye's green leap
Even as India-Turkiye ties face strain over Ankara's role following the Pakistan-orchestrated attack in Pahalgam, it is worth examining Turkiye's climate governance change is a shared existential challenge. On July 2, Turkiye's Grand National Assembly passed its first climate law, placing its commitments on a legal footing. It sets a 2053 net-zero target, establishes a national Emissions Trading System (ETS), enshrines 'climate justice' and 'just transition', and mandates institutions such as a climate change directorate, carbon markets board, adaptation bodies, and an EU-aligned Green Taxonomy. Funds and incentives for renewables and resilience planning are also shift moves Turkiye from aspirational policies to binding obligations for emission cuts, climate finance, and biodiversity. Yet, environmentalists argue the law is 'far from ideal'..Strengths and law stands out for its binding net-zero target and accountability provisions covering public and private actors, shielding policy from reversals. Its multi-level governance model, via provincial boards chaired by governors, recognises the local nature of climate impacts: urban floods, droughts, or wildfires. The ETS and green taxonomy align environmental goals with trade needs, especially given Turkiye's EU export exposure and the looming Carbon Border Adjustment Mechanism (CBAM). Enforcement is robust: fines from 500,000 to 5 million Turkish Liras ($12,500-125,000) for reporting breaches demonstrate serious gaps persist. Sector-specific targets are absent, complicating Paris Agreement alignment. The law omits any fossil fuel phase-out, despite Turkiye's reliance on coal and gas. There is no independent expert advisory body to provide oversight, raising questions over transparency. Furthermore, continued mining approvals in sensitive zones risk 'greenwashing' development. Civil society participation remains constrained, limiting grassroots monitoring, and democratic policy and promise of India's co-op for can learn much from this experiment. First is the move from policy to law. Unlike India's non-binding climate missions, Turkiye's statute embeds obligations enforceable by courts, integrating climate governance more deeply within the State apparatus. Second, decentralisation is key. Turkiye's provincial plans and adaptation strategies could inform India's states and municipalities, often first responders to floods, droughts, and heatwaves, but they lack in phased ETS also offers a valuable model. By linking with trade imperatives like the CBAM, Turkiye provides a blueprint for India to develop carbon pricing gradually, avoiding disruption while signalling market seriousness. Equally important are its green taxonomy and finance framework. India, despite progress on ESG disclosures and green bonds, still lacks a harmonised classification of climate-aligned investments..A unified taxonomy would aid investors and streamline capital for low-carbon projects. Turkiye's legal inclusion of 'climate justice' and 'just transition' is especially relevant for India's socio-economic diversity. Communities dependent on fossil fuels need re-skilling, compensation, and alternative livelihoods to ensure fairness in energy Turkiye's misstep in permitting mining underscores the need for coherence. India, too, must align industrial, energy, and infrastructure policies with its environmental goals to avoid internal unique replication is neither feasible nor desirable. India's demographic scale, rural economy, and 79% coal-based power mix demand a tailored approach. A legal framework here must combine emissions reduction with livelihood safeguards and inclusive growth. Capacity-building is another as Turkiye delayed local strategy rollouts until 2027 for training and institutional readiness, India must invest in equipping municipal and state authorities with technical skills and resources. Public participation is where India could excel. Its vibrant civil society, if systematically engaged, could deliver greater transparency, scrutiny, and enforcement than Turkiye's centralised India's fragmented programmes, from energy efficiency to afforestation, into a single, overarching law could provide clarity. A comprehensive climate Act could unify adaptation, mitigation, finance, and just transition in one enforceable a climate-legal climate law marks an important moment in global environmental governance. For India, its strengths: legal enforceability, decentralisation, and alignment with trade are instructive, as are its weaknesses: lack of sectoral targets, fossil fuel ambiguity, and restricted public set to host 1.6 billion people by mid-century, faces mounting climate stresses. Relying solely on voluntary missions is inadequate. By borrowing from Ankara's experiment while tailoring to Indian realities, New Delhi can forge a statutory framework fit for its scale and complexity..A thoughtfully drafted climate Act would move India beyond piecemeal schemes towards a co-ordinated, enforceable transition. By embedding equity and coherence, it can deliver not only emissions cuts but also economic resilience and social fairness. For a country balancing rapid urbanisation, coal dependence, and climate vulnerability, the stakes are lesson from Turkiye is clear: binding, multi-level legislation is not a luxury but an imperative. Done well, it could anchor India's climate ambition in law, turning disparate efforts into a genuine national transition..(Former ambassador Anil Trigunayat is a distinguished fellow at the Vivekananda International Foundation. Sumit Kaushik is principal adviser, Council for New Economy Research (CNER)).
Reuters
16-07-2025
- Business
- Reuters
Analysts' EU carbon price forecasts steady as US tariff concerns linger
LONDON, July 16 (Reuters) - Analysts have kept their forecasts for prices in the European Union's carbon market roughly steady with the spectre of tariffs from the United States and weak industrial output weighing on expectations. The EU's Emissions Trading System (ETS) is Europe's main tool for curbing emissions. It forces manufacturers, power companies and airlines to pay for the carbon dioxide they emit by surrendering carbon allowances. According to a survey of ten analysts, EU Allowances (EUAs) are forecast to average 73.54 euros/metric ton for the third quarter of 2025, slightly down from the 76.10 euros/metric ton forecast made in April. 'EU carbon prices have struggled through 2025 due to geopolitical uncertainty and trade turmoil, which have limited upside potential', said Veyt carbon market analyst Henry Lush. Trade tariff announcements from the United States have stoked fears of stalling economic growth in Europe which could dent industrial output and along with it demand for carbon allowances. The benchmark EU carbon contract traded at 71.30 euros a metric ton on Wednesday, down around 15% from 2025's intra-day peak of 84.50 euros/ton in late January. The average forecast for 2025 was 75.15 euros/ton, slightly up from 74.89 euros/ton. All the analysts surveyed expected carbon prices to rise in the coming years as the cap on the amount of emissions that a sector, or group of sectors, can produce decreases under the ETS. 'The market should get substantially tighter from 2026, with both auction and free allocation supply dropping away that year. Investors should start to price in some of that upcoming tightness as we get closer to 2026,' said Energy Aspects analyst Ben Lee. Free allocations are given to businesses to help them compete with international competitors that are not subject to the same carbon costs. However, these will be reduced from next year when the EU launches its carbon border tax forcing importers to pay equivalent carbon costs. The average EUA forecast for 2026 was 91.08 euros/ton, down from 91.37 euros/ton in April. The average forecast for 2027 was 108.70 euros/ton, down from 109.62 euros.
