Overview
Sandbag is a non-profit think tank based in Brussels that conducts evidence-based advocacy for ambitious climate policy. The organization provides data tools including an EU ETS Dashboard, CBAM Simulator, and EU ETS Simulator, and focuses on topics like the EU Emissions Trading System and Carbon Border Adjustment Mechanism.
In the news
- Our newest report is out: A guide to the EU CBAM – Perspectives for Chinese Stakeholders Sandbag looked at how Chinese firms can navigate the EU's Carbon Border Adjustment Mechanism—including what challenges businesses can overcome, for example: 🔹 Verification: Firms already accredited for the EU Emissions Trading System (ETS) will get fast-track approval, and Chinese entities can be entrusted by accredited firms. 🔹 Verification risks: Although these are borne by importers, they may (at least partly) be transferred to
- Good news on the MSR, but it’s not over yet! On 20 October, the European Commission, Parliament and Council avoided the worst possible outcome for the European carbon market. They voted to keep the invalidation mechanism in the Market Stability Reserve while raising its trigger threshold, i.e. the maximum number of permits the reserve can hold, from 400 million to 700 million allowances. The latter is not good news, but for context, in July, the Commission proposed removing invalidation altogether, while the Council called for
- As the CBAM enters a decisive phase, at today’s trilogue negotiations, policymakers face a choice between strengthening the mechanism so it delivers on its climate objectives and leaving loopholes that risk its effectiveness. There are now credible solutions on the table to address the main concerns raised by industry: ✅The European Council and Parliament have proposed extending CBAM further downstream, addressing circumvention and carbon leakage along the value chain. ✅ For exports, the Parliament's proposal to link export support
- Our idea for fixing aviation’s role in the EU ETS is officially part of the legislative conversation! Similar to our proposal to incentivise the aviation sector’s green transition, the Left has proposed an amendment that would limit the ability for aviation to surrender allowances from other sectors. This is a significant step in the right direction. In the last decade, aviation has stayed within its carbon budget twice, in 2020 and 2021, and only because of Covid-19. In 2024, it overshot its allocation by 119%, and each
- More than five years of surplus emission allowances in the EU ETS! This is what the Commission’s proposal would create by 2040, if the EU reduced its emissions by 85%. In other words, the ETS would not be the driver of this emissions reduction. The EU ETS is being reviewed, and the risk to the EU’s climate goal does not come from one single change but from all of them together. When considering any single Commission proposal in isolation it might seem manageable. But when considering the cumulative effect of these proposals, the
- We're delighted that Sandbag’s Adrien Assous will be moderating the debate, "Is the EU ETS delivering on its objectives? Will the proposed reforms help or hinder progress?" at Carbon Forward London next week, on 14 October at 11 am. As EU policymakers consider reforms to the ETS, Adrien and panelists Aurora D'Aprile (IETA), Ellen De Vocht (EEX), and Michael Evans (IAG) will address key questions about how effective the EU ETS has been in driving decarbonisation while maintaining industrial competitiveness. We will discuss to what
- Something has gone badly wrong. The EU ETS was created to make pollution more expensive and drive cleaner choices. But fare distortions persist because flying is very often cheaper than taking trains. If we are serious about decarbonising transport, the system must be strengthened so that unnecessary emissions are no longer rewarded with lower prices. Sandbag's aviation proposal would help ensure that the options that pollute the most are not cheaper. We urge the EU to end a system that fails to incentivise more sustainable
- Getting from Newcastle to Birmingham via Spain is cheaper than on the direct train (Daily Mail, 2017). In transit routing, price is one of the hardest features to model for several reasons. First, it is dynamic and depends heavily on the day and hour you make a request. Second, the cheapest option may not even be in the same country, as the image shows. There are several reasons why. Some include local price regulations, which might apply within a country but can be ignored in a global search. Rail and low-cost airline pricing
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