In an interesting article published in the European Energy Review, Thomas Spencer and Emmanuel Guérin, two researchers from IDDRI, explain why the ETS is a crucial element of European (and consequently also of worldwide) climate policy.
They point out the two main shortcomings of the ETS and suggest a two pronged approach to address these. On the one hand, there is oversupply of certificates at the moment; on the other hand, there is uncertainty with regards to EU policy concerning the ETS beyond 2020.
The approach they propose therefore includes a strengthening of the long-term ETS carbon caps with the EU’s official 2050 target of reducing GHG emissions by 80%, and to set down more precise intermediate targets for 2030.
What is more, the authors point out that the European Commission has the option of limiting the supply of certificates for short periods by delaying auctioning. The problem with the latter approach is, though, that the EUAs are not deleted, their issuance is merely postponed.
Therefore, TheCompensators* point out that civil society, including you, can contribute to reducing the availability of EUAs by buying and deleting CO2 emissions. These certificates are then removed from the market for good and cannot be used ever again!