This document presents main takeaways and insights from a workshop organised by the Ariadne Project in Brussels on 30 November 2022. The workshop convened experts from seven organisations that operate carbon market models – academic institutions as well as carbon market analysts.

While policymakers are currently mulling over the EU-ETS reform, it is a good time for analysts and scientist to take a step back and discuss the analytical tools used to project the outcome – specifically: the expected, predicted or necessary carbon price(s) towards 2030. To that end, the Potsdam-Institute for Climate Impact Research (PIK) and Ecologic Institute organize a workshop in Brussels on 30 November 2022.

In this Ariadne publication, experts from Ecologic Institute, Potsdam Institute for Climate Impact Research, RWI – Leibniz Institute for Economic Research, Mercator Research Institute on Global Commons and Climate Change, Stiftung Umweltenergierecht, ZEW – Leibniz Centre for European Economic Research and IER Stuttgart analyzed various options for the relief and level of the CO2 price – and identified advantages and disadvantages as well as implementation requirements of different design options. The focus is on two key political points of contention, where scientific findings can prevent an impending hardening of the position and thus promote a consensus that is conducive to climate protection.

With the Fit for 55 package, the European Commission made far-reaching proposals in July 2021 to align the architecture of European climate policy with the goal of climate neutrality. These proposals include the strengthening of the existing emissions trading scheme, the introduction of new emissions trading for transport and buildings, a border adjustment mechanism (CBAM) to protect against carbon leakage and the tightening of regulatory instruments for transport and buildings. However, the proposals raise a number of questions – from distributional effects and acceptance to the consistency of the instruments. In the course of this two-day hybrid event, researchers from the Ariadne consortium discussed these issues with stakeholders and decision-makers at the European level.