additional carbon pricing of industrial emissions at a national level. Free allowances granted to certain industries in the ETS should be gradually phased out, and a carefully designed carbon border adjustment mechanism can be considered to prevent reductions in EU emissions being reflected in higher emissions abroad. Higher carbon prices would also make support schemes, including subsidies, for renewable power unnecessary. And where the carbon prices needed to incentivize investments would be unfeasibly high, revenue-neutral instruments such as feebates can be considered
products with above-average emission rates and a sliding scale of rebates for products with below-average emission rates. 1 Since emissions from land use related to agriculture represent the largest component of emissions from land use land use change, forestry, and fisheries, the share of agriculture increases to 12 percent if these are included in total EU emissions. However, attributing forestry, which is emission-negative, to agriculture would substantially reduce the emissions from the sector. 2 Livestock density is associated with pressure on the