Carbon Fat Cats 2011 sets out the analysis of those companies profiting most from Europe’s Emissions Trading Scheme (ETS). The results matter because of their bearing on a crucial debate being held in Europe and the wider world – a debate about how to respond to profound challenges created by the economic dependence on fossil fuels, in particular the threat to a stable climate. Governments have largely accepted the need to help redirect economies towards a low-carbon model, and there are growing signs of a race between major global economies to lead the
market for clean technologies. Europe’s cornerstone policy intended to help achieve this is the ETS, which sets a cap on emissions and allows these allowances to be traded. The EU ETS is the world’s largest functioning carbon market, so assessing its performance is crucial for the global climate debate – its impact on the companies it regulates is an essential part of this.