EU ETS emissions could fall 43% if efficiency goal met

EU ETS emissions could fall 43% if efficiency goal met
Ecofys has released a report suggesting that, if the EU’s non-binding target to improve energy efficiency by 20% by 2020 was met, emissions could be reduced by up to 43 percent. It states that policy tools will be much more effective than market mechanisms in achieving carbon goals and that a 20% improvement in energy efficiency would also reduce emissions from installations covered by the EU’s ETS significantly, and would require a revision of the trading parameters. The report considers various adjustments to the EU ETS such as setting aside EUAs for auction or deepening the emissions cap from 21 per cent to 29-43 per cent.

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