COVID-19, Green Deal and recovery plan permanently change emissions and prices in EU ETS Phase IV

Abstract

This paper finds that the EU’s 2030 reduction target of -55% might correspond to EU ETS allowance prices between 45 and 94 e/ton CO2 today, while the invalidation rule reduces carbon emissions to 14.2 to 18.3 GtCO2 over the EU ETS’ remaining lifetime.