To meet its increasingly stringent emissions reduction targets, the European Union plans to extend the use of emissions trading, to also cover emissions from road transport and buildings. To understand the effects of this move, DG CLIMA commissioned a comprehensive analysis to investigate the economic, social, environmental, and regulatory / administrative implications. Together with partners ICF, eclareon, Enerdata, Fraunhofer Institut, Cambridge Econometrics, CITEPA, and Milieu, the Ecologic Institute investigated the general options for either the extension of the existing EU ETS or the introduction of a stand-alone scheme.

Ecologic Institute investigates the extent to which transport and buildings are already affected by the existing EU emissions trading scheme, e.g. through district heating networks and electromobility. Furthermore, Ecologic Institute contributes case studies on non-European emissions trading schemes covering transport and/or buildings (including California, New Zealand and Tokyo). Furthermore, Ecologic Institute provides analyses on which price-based instruments are already applied in selected EU member states. Finally, Ecologic Institute examines how the expansion of emissions trading would affect competitiveness and the EU's existing climate policy instruments.