Resolving the emerging endgame
Charting a path towards net-negative emissions with carbon removal
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Estimated reading time ~ 10 mins
In part one of this two-part series I introduced the emerging endgame. To recap, this refers to the period up the late 2030’s when the EU ETS emissions cap will approach zero. The anticipation of this event could have a big impact on the behaviour of market participants and the ability of the scheme to continue to deliver on its policy objectives.
There are a number of measures that could be used to ameliorate the impact of the emerging endgame, however none of these really deals with the underlying issues. More fundamentally the EU ETS will need to move towards a structure that incentivises net-negative emissions, something that will usher in a major role for carbon removal. It’s to the question as to how that could happen to which we now turn.