LIFE COASE - Collaborative Observatory for ASsessment of the EU ETS

Introduction

In the context of the global race to net zero greenhouse gas emissions and in view of deeper integration of carbon markets, there is a strong need for assessing the functioning of emissions trading systems (ETSs) and for international cooperation on emissions trading. The ongoing revision of the EU Emissions Trading System (EU ETS), as part of the European Green Deal, calls for more attention and evidence on the evolution of the instrument and its effects.

Meanwhile, the EU remains committed to disseminating its experience with the EU ETS and is keen to learn from other jurisdictions. New data and tools for monitoring and assessing the EU ETS, as well as international policy dialogue involving other ETSs, can bolster the development of the EU ETS at this critical time.

Objective

The ultimate objective of LIFE COASE is to support EU and Member State policymakers in the implementation and development of the EU ETS, including its integration with other carbon markets.

Observatory Establishment

To this end, LIFE COASE will establish the first observatory for assessment of the EU ETS, which will be a reference source of knowledge for policymakers and stakeholders. The Observatory will comprise six main action areas:

1. Production of new installation-to-firm matchings and data to increase the quality and quantity of studies assessing the EU ETS and its effects.
2. Generation of new firm-level data on climate investments through an extension of the European Investment Bank Investment Survey.
3. Production of new indicators for annual monitoring of the EU ETS.
4. Collection, coordination, and synthesis of model-based assessments (ex-post and ex-ante) of the EU ETS and other ETSs.
5. Organisation and support of the Net Zero and Carbon Market Policy Dialogue between the European Commission, as the regulator of the EU ETS, and the regulators of other ETSs worldwide.
6. Dissemination of knowledge on the EU ETS and carbon markets more generally, among policymakers, businesses, NGOs, and researchers.