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How carbon payment can facilitate the EU's Fit for 55 targets for ESR sectors

Our proposal contributes to the revision of the Effort Sharing Regulation with a complementary mechanism using results-based carbon payments to member states. The mechanism would make higher emission reductions politically more palatable, would contribute to the solidarity and cost-efficiency objectives, and would offer member states additional financing for the transition. As an innovative climate cooperation approach, it could strengthen the EU’s global climate leadership.

ESR revision consultation (Draft Sep)
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