This brief builds on the paper ‘Revenue dimension of the EU ETS Phase II’ report.

Europes flagship policy for the EU in meeting both its 2020 and 2050 climate targets, the EU Emissions Trading Scheme, willraise revenues in the range of150-190bnacross the EU out to 2020. This would rise to200-310bnshould the EU move to a 30% target, with a 34% EU ETS cap relative to 2005. Strategic use of such revenues could acceleratethe necessary transition to a low carbon economy.