If properly designed, the EU Emissions Trading System (ETS) and national targets can effectively complement each other and jointly contribute to achieving the EU’s proposed 2040 climate target of a 90% net emissions reduction compared to 1990 levels.
Lessons from ETS1 for ETS2
The lesson from ETS1 is therefore not that revenue use has failed, but that legitimacy cannot be taken for granted. ETS2 will succeed politically only if carbon pricing is visibly linked to fair, effective and socially conscious investment.
Rewatch: A fair and effective ETS2 – how do we get there?
Dec 3, 2025
On Tuesday 2 December, the LIFE Effect consortium launched its ETS2 101 guide together with a panel discussion on the consequences of recent changes of carbon pricing for road transport and buildings in the EU.
Rewatch the event here:
And download presentations from:
Emma Wikström, policy expert on EU carbon markets at Carbon Market Watch
Sylvie Ludig, senior researcher at Öko-Institut
Marcus Ferdinand, senior analyst at Veyt
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