Many countries, including Denmark, are struggling to reduce CO2 emissions from transport. Particularly road transport, which is accountable for the main part. Yet many countries are investing in more road infrastructure, which typically will lead to more traffic and thus make it harder to reduce overall emissions from road transport.
In the EU, negotiations on new rules for free allowances in the Emissions Trading System are entering into their decisive phase. The allocation of free allowances overrides the ‘polluter pays principle and slows down decarbonization. Free allowances should therefore be phased out more quickly, and the allocation of free allowances should be better targeted.
By Martin Birk Rasmussen, International klimaanalytiker