Explore our reports, discussion papers, analyses, and other publications on sustianability and climate policy.
Type: Discussion Paper
Date: July 2026
Following the amendment of the European Climate Law, the European Union (EU) may use a limited volume of Article 6 credits to meet its 2040 climate target. If a share of these credits enters the EU Emissions Trading System 1 (EU ETS 1), this paper argues that indirect integration through an intermediary mechanism would be preferable to direct use by regulated entities.
Type: Discussion Paper
Date: July 2026
The Carbon Border Adjustment Mechanism (CBAM) levels carbon costs between EU and imported products but does not address export carbon leakage. As free allocation under the EU ETS is phased out, EU exporters face rising carbon costs, potentially reducing competitiveness in markets with weaker climate policies.