This report by Ecologic Institute researchers Hugh McDonald and Jonathan Gardiner, commissioned by the German Environment Agency, examines how market-based policy instruments – such as an emissions trading scheme for agriculture – could help close this gap.

This project supports the German Environment Agency (UBA) in developing strategic options for the structural evolution of the EU ETS post-2030. Its results will feed into the European Commission's 2026 review of the ETS and inform Germany's position in upcoming negotiations on ETS reform.