Roundtables: Is the EU ETS the way forward?
In 2016, StrategicFit hosted a series of Roundtable events looking at how CO2 impacts business post-COP 21. A constant theme of discussion was the challenge of effectively linking regulation to industry decision-making.
The EU ETS is one method, and with the Phase 4 revisions imminent and the uncertainty surrounding the effect of Brexit, we thought it was a good time to reflect on how it has worked so far. We wanted to know how effective it is in changing behaviours, and how does industry view the future of the EU ETS.
Our key findings included:
- The EU ETS has a limited effect on decision-making
- The carbon price levels at which the EU ETS would impact business decisions vary enormously
- Cost savings, not carbon considerations, are the main driver behind energy efficiency projects
- The EU ETS will not currently deliver COP 21 objectives. Removal of surplus credits and creating better links to industry and other schemes are improvements
- Nearly half of respondents have made decisions resulting in carbon leakages
Moving forward, these are the questions we think are worth considering:
- With a flawed EU ETS, how is your company preparing for future climate challenges?
- Companies leak carbon now; how must they adapt if regulations improve to stop this?
- How can industry ensure that their voices are heard in EU ETS policy decisions?