Strengthening the EU ETS: creating a stable platform for energy sector investment

Europe faces the intertwined issues of debt, recession and economic uncertainty. These issues also impact its climate and energy policy, and in particular the EU Emissions Trading System (EU ETS). However, improvement to the EU ETS could enhance European prospects for economic stabilisation, investment and recovery. This report, Strengthening the EU ETS, analyses the underlying issues affecting the EU ETS, and sets out the main response options. The core conclusion is that no individual measure adequately addresses the combined needs: to restore confidence, to stabilise expectations, and to provide a strategic context for huge investment in the EU energy sector.