German Emissions Trading Authority (DEHSt): international newsletter – reports, research and activities (2)

Dear Reader,

While the price for an EU allowance is now around 50 euros, EU ETS is getting prepared for another big reform as part of the comprehensive climate legislation package "Fit for 55" scheduled for July 2021. EU’s new emission reduction target for 2030 (minimum 55 percent below 1990 levels) needs to be reflected in a tighter cap in EU ETS, while a new carbon border adjustment mechanism is intended to mitigate the risk of carbon leakage for European energy-intensive industry. EU’s increased climate ambition is happening against the backdrop of other encouraging signs: In the first half of 2021, several nations, such as the USA, Japan and Canada, have pledged to cut carbon emissions faster. In Germany, the government has revised the Climate Change Act after a ruling of the Federal Constitutional Court. The Draft of the Law outlines a path towards climate neutrality by 2045 and increases the national emission reduction target for 2030 to minus 65 percent below 1990 levels. A meaningful carbon price is key for supporting the transformation towards a decarbonised world!

With this newsletter, published twice a year, we provide a quick overview of our latest publications and activities relevant to an international audience interested in emissions trading and carbon markets.

I wish you a pleasant reading and look forward to discussing these issues with you in the future.

Yours faithfully,

Dr Jürgen Landgrebe
Head of the German Emissions Trading Authority at the German Environment Agency