In recent weeks the possibility of including transport in the EU emissions trading system has been raised.
We doubt that this proposal would strengthen the ETS, or encourage vehicle emissions reductions.
Dutch environmental consultancy TNO has shown that that only a carbon price of over €100/tonne would have any effect on energy efficiency in the transport sector.
The proposal set out in a recent draft agreement for this month’s European Council is more limited. Member states would have the option to include transport in the ETS at national level. This could still turn out to be problematic. This is a concession to Denmark.
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