EU ETS Review: Initial Reactions to the July 2026 Proposal
Author(s): Andrei Marcu, Philippe Chauveau, Alexandra Maratou, Jean-Yves Caneill, Olivier Imbault, Marco Sangiovanni.
This reflection note presents ERCST’s initial reactions to the European Commission’s July 2026 proposal for the review of the EU Emissions Trading System (EU ETS), while also providing an overview of the proposal’s main elements.
The note includes ERCST’s broader assessment of the proposed changes to the EU ETS, including provisions related to the Market Stability Reserve, international credits, carbon removals, free allocation, CBAM-related measures, revenue earmarking, and industrial decarbonization support mechanisms.
In addition to ERCST’s broader assessment, the note brings together reactions from ERCST experts and Senior Fellows, highlighting different perspectives on governance, flexibility, long-term carbon pricing, the role of complementary industrial policies, and the future resilience of the EU carbon market.
