2017 State of the EU ETS Report

The EU Emissions Trading System (EU ETS) has passed its 10th anniversary. As any other undertaking, it requires, periodically, an assessment regarding its well-functioning, and the delivery of its objectives. Article 10(5) of the EU ETS Directive provides for such a yearly assessment. The State of the EU ETS Report is not intended to duplicate or replace existing authoritative work. It aims to be an independent contribution to the policy debate, which is needed to ensure that the EU ETS is “fit for purpose.” This report discusses the current state of play in the EU ETS while abstaining, to the extent possible, from providing solutions.