The emissions trading scheme, EU's flagship climate policy tool, is at a turning point. With the price of carbon hovering way below €5 per tonne and a glut of permits on the market, something must be fixed or the instrument will turn to dust. As a first step towards correcting the problem, the European Commission has proposed a measure to withhold pollution permits temporarily, a process called ‘back-loading'. Back-loading appears harmless enough as all withheld allowances would re-enter the market before the end of this decade. Therefore the European Commission and many stakeholders recognise that structural measures are needed so that the ETS would support the transition towards a low-carbon economy.



















