Scanning the options for a structural reform of the European Union Emissions Trading System

Decisive steps for a reform of the EU Emissions Trading System (EU ETS) are a key element in the 2030 Climate and Energy Policy Framework adopted by the European Council in October 2014. The study puts the main reform proposals suggested so far into a coherent framework and evaluates various reform options. The reform options can be summarised into three packages by their intentions: stabilizing the market for emission allowances, adding flexibility and a long-term perspective to allocations, enhancing further the functionality of the EU ETS.