Making Hay with the ETS

Abstract

With its European Green Deal and the new European Climate Law, the EU has given itself a daunting challenge and a legal obligation to achieve a net 55% reduction of greenhouse gases by 2030 and full climate neutrality by 2050. In order to do this, it has to figure out not only how but also where such large reductions can be made. While the EU has a robust mechanism in its regulatory toolbox for achieving emissions reductions in the form of its Emis-sions Trading System, at the present moment the ETS does not cover the agricultural sector, which currently amounts to a full 10% of its total greenhouse gas emissions. To date