ERCST - European Roundtable on Climate Change and Sustainable Transition

📌Yesterday, the European Roundtable on Climate Change and Sustainable Transition (ERCST) hosted the event "ETS - CBAM Strawman - Paper Launch" Read the paper: t.ly/933F0 🎯 Key Takeaways: ✅ The paper examines how the EU CBAM interacts with the ETS. Because CBAM is meant to mirror the ETS for WTO compatibility, any mismatch between the two systems creates policy challenges. ✅ The study identifies several gaps in the CBAM–ETS alignment—especially those affecting EU industrial competitiveness. It also highlights the major role of ETS and CBAM revenues in shaping decarbonization, competitiveness, and market dynamics. ✅ Beyond these immediate issues, the paper notes longer-term questions: expanding the ETS to new sectors, integrating international credits or carbon removals, linking ETS systems, and technical challenges such as MRV, hedging, and the Market Stability Reserve. ✅ Finally, the paper outlines potential ways forward: speeding up industrial decarbonization using ETS/CBAM revenues; delaying (“backloading”) the full CBAM rollout; introducing a WTO-compatible export adjustment; pausing Scope 2 expansion until indirect cost compensation is reformed; finding a pragmatic compromise on scrap; and taking a cautious, case-by-case approach to downstream and lateral CBAM expansion. 🫵 Watch the recording: t.ly/MNnuF 📅 Stay informed about our upcoming events 👉🏼 t.ly/ya6OM

‼️NEXT WEEK‼️ #H2 | Discussion – Public consultation on CO2 markets and infrastructure 📆 16 December - 10:00 - 12:30 — ONLINE 🎯𝐊𝐞𝐲 𝐩𝐨𝐢𝐧𝐭𝐬 ✅ The European Commission recently launched a public consultation on a legislative initiative concerning CO₂ transport infrastructure and markets (Consultation period: 6 October 2025 – 9 January 2026). ERCST will be submitting input to this consultation. ✅ This session is intended as an interactive exchange where stakeholders can share their insights, raise concerns, and help identify practical solutions. 🔎Read more 👉🏼 t.ly/0PHVC 📅 Stay informed about our upcoming events 👉🏼 t.ly/ya6OM

‼️ THIS WEEK ‼️ #H2 | "Paper Launch - Towards a comprehensive hydrogen infrastructure – Assessing progress and addressing gaps" 📆 11 December - 15:00 - 17:00 — Room 6, Conseil Central de l'Economie, Avenue d'Auderghem 20, 1040 Brussels 💻 Register in person 👉🏼 t.ly/88Twn 🪴 Zoom Link 👉🏼 t.ly/X9JvT The panel will include: 🟢 Andrei Marcu, ERCST 🟢 Davine Janssen, EU Commission, DG ENER 🟢 Abel Enríquez, ENNOH 🟢 Olivier Imbault, ERCST 🟢 Federico Benito Donà, The European Steel Association (EUROFER) 🟢 Wojciech Lach, ORLEN S.A. 🟢 Nicolai Romanowski, Cefic 🟢 Alessia Virone, CATF 🟢 Chiara Cavallera, ERCST 🎯𝐊𝐞𝐲 𝐩𝐨𝐢𝐧𝐭𝐬 ✅ This is the launch event of ERCST’s Paper ‘Towards a comprehensive H2 Infrastructure: assessing progress and addressing gaps’. ✅ This initiative aims to analyse the current status of hydrogen infrastructure development, identify the main uncertainties and challenges hindering progress, and provide an overview of the EU policy framework, including the forthcoming European Grid Package, as well as the support mechanisms in place. It will conclude with a series of recommendations. 🔎Read more and check the agenda 👉🏼 t.ly/W8iBa 📅 Stay informed about our upcoming events 👉🏼 t.ly/ya6OM

‼️IT'S TOMORROW‼️ #ETS #CBAM | "Paper Launch - EU ETS - CBAM Strawman" 📆 9 December - 10:00 - 12:00 — ROOM 6, Conseil central de l'economie, avenue d'auderghem 20 💻 Register in person 👉🏼 t.ly/ARhbS 🪴 Zoom Link 👉🏼 t.ly/HuGHR 🎯𝐊𝐞𝐲 𝐩𝐨𝐢𝐧𝐭𝐬 ✅ This is the launch event of the EU ETS – CBAM Strawman Report, under the framework of ERCST’s initiative on the “future of emissions trading in the EU”. The final theme under discussion in this project is the “EU ETS – CBAM Strawman”. ✅ ⁠This event will cover the EU ETS – CBAM Strawman Report, this being the last report of the Future of the EU ETS project. During this event the report will be presented by the authors and discussed by commentators. 🔎Read more 👉🏼 t.ly/NO4iU 📅 Stay informed about our upcoming events 👉🏼 t.ly/ya6OM

‼️ NEXT WEEK ‼️ #H2 | "Paper Launch - Towards a comprehensive hydrogen infrastructure – Assessing progress and addressing gaps"   📆 11 December - 15:00 - 17:00 — Room 6, Conseil Central de l'Economie, Avenue d'Auderghem 20, 1040 Brussels 💻 Register in person 👉🏼 t.ly/88Twn 🪴 Zoom Link 👉🏼 t.ly/X9JvT The panel will include: 🟢 Andrei Marcu, ERCST 🟢 Davine Janssen, EU Commission, DG ENER 🟢 Abel Enríquez, ENNOH 🟢 Olivier Imbault, ERCST 🟢 Federico Donà, Eurofer 🟢 Wojciech Lach, ORLEN S.A. 🟢 Nicolai Romanowski, CEFIC 🟢 Alessia Virone, CATF 🟢 Chiara Cavallera, ERCST 🎯𝐊𝐞𝐲 𝐩𝐨𝐢𝐧𝐭𝐬 ✅ This is the launch event of ERCST’s Paper ‘Towards a comprehensive H2 Infrastructure: assessing progress and addressing gaps’. ✅ This initiative aims to analyse the current status of hydrogen infrastructure development, identify the main uncertainties and challenges hindering progress, and provide an overview of the EU policy framework, including the forthcoming European Grid Package, as well as the support mechanisms in place. It will conclude with a series of recommendations. 🔎Read more and check the agenda 👉🏼 t.ly/W8iBa 📅 Stay informed about our upcoming events 👉🏼 t.ly/ya6OM

‼️IN TWO WEEKS‼️ #H2 | "Paper Launch - Towards a comprehensive hydrogen infrastructure – Assessing progress and addressing gaps" 📆 11 December - 15:00 - 17:00 — ROOM 6, Conseil central de l'economie, avenue d'auderghem 20 💻 Register in person 👉🏼 t.ly/88Twn 🪴 Zoom Link 👉🏼 t.ly/X9JvT 🎯𝐊𝐞𝐲 𝐩𝐨𝐢𝐧𝐭𝐬 ✅ This is the launch event of ERCST’s Paper ‘Towards a comprehensive H2 Infrastructure: assessing progress and addressing gaps’. ✅ This initiative aims to analyse the current status of hydrogen infrastructure development, identify the main uncertainties and challenges hindering progress, and provide an overview of the EU policy framework, including the forthcoming European Grid Package, as well as the support mechanisms in place. It will conclude with a series of recommendations. 🔎Read more 👉🏼 t.ly/W8iBa 📅 Stay informed about our upcoming events 👉🏼 t.ly/ya6OM

🚨 A new ERCST publication is out👇🏼 🔷 "Bridging the CDR Funding Gap: Policy choices and design options" Read ERCST Report here 👉 t.ly/mX0QW 🎯 Key takeaways: ✅ The European Union faces a critical funding shortfall for scaling CDR to achieve climate neutrality. Scientific assessments, including from the ESABCC and IPCC, indicate the EU will need 400–800 million tonnes of CO₂ removals annually by mid-century to align with 1.5–2°C pathways. Current EU-level funding represents <0.1% of the Green Deal budget, leaving a substantial gap for R&D, pilots, and infrastructure over 15–20 years. National efforts in selected countries provide supplements but remain uneven, exacerbating a "valley of death" at intermediate TRLs. ✅ The report analyzes five funding options to bridge this gap, including CCfDs, Public Purchasing Programmes, VCMs, offtake agreements, and integration into compliance mechanisms. ✅ Design considerations emphasize eligibility under the CRCF's QU.A.L.ITY criteria, prioritizing permanence and safeguards against reversals. The report weighs technology neutrality (for market-driven efficiency) against strategic prioritization (to address heterogeneous risks and diversify portfolios), recommending neutrality with targeted support for immature pathways. ✅ Policy recommendations advocate a time-limited, fiscally prudent architecture: sequencing public R&D/demonstration grants with performance-based private incentives; using reverse-auctioned CCfDs for procurement; enforcing robust MRV/permanence via CRCF; and incorporate budgetary caps, degression, and sunsets to transition to private-led scale-up. Authors: Andrei Marcu, Marino Varricchio, Chiara Cavallera

Thank you Fabio Poretti and all the other speakers for the feedback and continued engagement. Fabien Ramos Małgosia Rybak Atilla Yucel Marino Varricchio Liv Rathe Francesca Battersby Emil Bundgaard Ipsen

‼️IN TWO WEEKS‼️ #ETS #CBAM | "Paper Launch - EU ETS - CBAM Strawman" 📆 9 December - 10:00 - 12:00 — ROOM 6, Conseil central de l'economie, avenue d'auderghem 20 💻 Register in person 👉🏼 t.ly/ARhbS 🪴 Zoom Link 👉🏼 t.ly/HuGHR 🎯𝐊𝐞𝐲 𝐩𝐨𝐢𝐧𝐭𝐬 ✅ This is the launch event of the EU ETS – CBAM Strawman Report, under the framework of ERCST’s initiative on the “future of emissions trading in the EU”. The final theme under discussion in this project is the “EU ETS – CBAM Strawman”. ✅ ⁠This event will cover the EU ETS – CBAM Strawman Report, this being the last report of the Future of the EU ETS project. During this event the report will be presented by the authors and discussed by commentators. 🔎Read more 👉🏼 t.ly/NO4iU 📅 Stay informed about our upcoming events 👉🏼 t.ly/ya6OM

‼️IT'S TOMORROW‼️ ⚠️ ONLINE ONLY #CDR | "Paper Launch – Bridging the CDR funding gap: design options and policy choices" 📆 25 November - 15:00 - 16:30 — ONLINE ONLY 🪴 Zoom Link 👉🏼t.ly/WNOhb The panel will include: 🟢 Andrei Marcu, ERCST 🟢 Fabien Ramos, European Commission 🟢 Marino Varricchio, ERCST 🟢 Małgosia Rybak, Cepi 🟢 Atilla Yucel, Negative Emissions Platform 🟢 Liv Rathe, Norsk Hydro 🟢 Francesca Battersby, Carbon Gap 🟢 Emil Bundgaard Ipsen, Danish Ministry of Climate, Energy and Utilities 🟢 Fabio Poretti, CEWEP 🎯𝐊𝐞𝐲 𝐩𝐨𝐢𝐧𝐭𝐬 ✅ This paper presents findings on how the European Union can accelerate the deployment of permanent carbon dioxide removal (CDR) solutions through the design of effective funding mechanisms. ✅ ⁠While CDR is increasingly recognized as a strategic tool for achieving climate neutrality by 2050, the research demonstrates that existing funding frameworks remain fragmented and difficult to navigate. ✅ ⁠The paper explores several key mechanisms for advancing CDR deployment, and concludes by outlining actionable pathways for the EU to establish leadership in developing and scaling robust CDR solutions 🔎Read more 👉🏼 t.ly/IDy_n 📅 Stay informed about our upcoming events 👉🏼 t.ly/ya6OM