This briefing paper by Green Budget Germany (GBG) argues the inclusion of road transport in the EU Emissions Trading System (ETS) would not be an effective instrument to achieve climate change objectives in the sector as the weak price signal in the medium term would delay innovation and increase costs. Moreover, the scheme would not sufficiently cover upstream emissions. The paper maintains that an effective climate change policy should rather be based on developing ambitious EU-wide CO2 emission standards and adjusting fuel taxes.