German Economic Institute (IW)
To date, the ETS finds itself facing several challenges, i.a. in the form of a growing surplus of allowances. In the short term this surplus risks undermining the orderly functioning of the carbon market; in the longer term it could affect the ability of the EU ETS to meet more demanding emission reduction targets cost-effectively.
Therefore, structural reform measures, such as the Market Stability Reserve or the inclusion of further sectors, e.g. transport into the scope of the ETS are being discussed.
From an economic point of view it will be crucial to provide a stable framework that enables predictability for investments.
At the roundtable representatives from EU institutions as well as from industry and academia will exchange on the envisaged ETS reforms.
Achieving climate neutrality requires investment in technologies which protect the climate from global warming and necessitates a process of transformation in all sectors of the economy.
On the way to climate neutrality, the transition from a linear economy to a circular economy plays an important role. Resource cycles can be implemented in different ways in companies.