‘Europe will apply its emissions trading scheme to buildings and transport’, European Commission President Ursula von der Leyen told a summit of world leaders on 22 April 2021. Indeed, the European Commission announced earlier, in the European Green Deal of end 2019, that it considered to apply emission trading to road transport.
This report studies the conditions of the potential inclusion of road transport into the European Emissions Trading System, the EU ETS.
Throughout this study the focus is on CO2 reduction. While road transport has other dimensions and generates other externalities, this focus permits to get a clear picture of this single objective and the policies to reach it. Moreover, we focus on the tank-to-wheel emissions. These are the direct tailpipe emissions of road transport.