After proposing to raise the 2030 greenhouse gas emissions reduction target, the European Commission has announced a review of all relevant EU policies, taking this target into account, including the Emissions Trading System (ETS). Additionally, the European Commission will propose to extend the system to other sectors of the economy and will review the ETS market stability reserve for the purpose of servicing unused emission allowances after three years of operation.
In May, the European Commission started work on the possibility of extending the CO2 emissions trading system to sectors that had not been covered so far, i.e. road transport and construction. Their purpose is to assess the expansion of the EU ETS. The research also concerns the impact of such a solution on the distribution of reduction obligations in sectors outside the EU ETS.
Initial impact assessments of the proposed actions have been published which identify the possible nature and extent of changes to the EU Emissions Trading System (ETS). Comments on this Action Plan can be submitted from October 29 to November 26, and they will be used to fine-tune the initiative. The Commission will summarize the views received in a consultation report explaining the decisions it has taken on this matter.