2023 State of the EU ETS Report - Launch Event
2023-04-26 15:00 - 17:00 (Europe/Paris) | Residence Palace. Rue de la Loi 155, 1000 Bruxelles., Residence Palace. Rue de la Loi 155, Bruxelles, 1000, Belgium
This was the launch event of the 2023 State of the EU ETS Report1. During this event the report was presented by the authors and discussed by commentators. This was be the eighth annual report on the State of the EU ETS and builds on the reports produced by this group of authors, and other partners, in the last six years. The 2022 edition is available through this link.
The European Commission is required to annually assess, according to the EU ETS Directive, the functioning of the EU ETS and report back to the EU Parliament and Council. While the European Commission has its role to play in providing an official report, it is also important that independent review and assessment of the functioning and delivery of the EU ETS takes place.
The annual “State of the EU ETS” Report aims to provide such an independent contribution to the policy debate, which is needed to ensure that the EU ETS is “fit for purpose”. The Report is intended as a “snapshot”, providing policymakers and stakeholders with an overview of how the EU ETS is doing by April of each year, based on previous year data.
This event covered the 2023 Report. This year’s edition reflects the track record of the ETS last year and the revised EU ETS Directive to be adopted in mid-2023, its expected impact on the EU ETS, and the role the ETS is expected to play in the longer term.
1 The 2023 State of the EU ETS Report is a joint effort between ERCST, BloombergNEF, the Wegener Centre for climate and global change at the University of Graz and EcoAct.
Agenda Publication

Expert Stakeholder Consultation: European Carbon Bank
2023-10-02 13:00 - 14:30 | online
This was an online event.
The European Climate Law mandates a minimum 55% reduction in GHGs by 2030 from 1990 levels and targets Net Zero by 2050, prompting the European Commission to set a 2040 climate goal. An upcoming 2024 communication will assess the impact and address carbon removals essential for the “fit for 55” and 2050 Net Zero goals.
Under the current framework, the EU ETS plans to issue its final emissions permits by 2039, with future residual emissions offset by carbon removals. Yet, the current EU policy lacks a specific framework for this. There’s advocacy for establishing a European Carbon Bank, an Innovation Authority, and a Carbon Removal Certification Authority to enhance the EU’s carbon market structure.
A European Carbon Bank could optimize carbon market operations, support emission reductions, and aid the global shift to a low-carbon economy, ensuring market liquidity and addressing ETS 1 supply constraints by the 2030s.
This meeting was intended as a roundtable with a small group of invited stakeholders and policy makers to brainstorm on the potential aim and governance of a Carbon Bank in the EU, as well as its practical shape and implications on the current EU Climate architecture.
Agenda Slides Recording

Expert Stakeholder Consultation: Free Allocation Regulation (FAR) EU ETS Public Consultation
2023-10-04 10:30 - 12:30 | ERCST Rue Archimède 61, Bruxelles, Rue Archimède 61, Bruxelles, 1000, Belgium
This was an in-person event.
The revised EU ETS Directive (EU) 2023/959 was adopted on 10 May 2023 and published in the EU Official Journal six days after. The European Commission now needs to update several regulatory acts for the revised EU ETS to be implemented in 2024. One important update concerns the Free Allocation Regulation (FAR), that sets the rules for the allocation of allowances to those sectors under the risk of carbon leakage.
In the EU ETS, products under the carbon leakage list receive free allocation – at the benchmark level – for free. Following the adoption of the EU Carbon Border Adjustment (CBAM), the free allocation provided to energy intensive selected goods will be gradually phased out and replaced by the CBAM “protection”. The revised FAR is expected to be adopted by the end of 2023.
This meeting was intended as a brainstorming roundtable with a small group of invited stakeholders and policy makers to brainstorm on the upcoming revision of the FAR, in response to the ETS revision/Fit For 55.
Agenda ERCST Slides Euroalliages Slides

Expert Stakeholder Consultation: ETS in Agriculture
2023-11-22 10:30 - 12:30 | ERCST Rue Archimède 61, Bruxelles, Rue Archimède 61, Bruxelles, 1000, Belgium
This was an in-person event.
The European Climate Law set the objective of cutting GHGs by at least 55% by 2030 compared to 1990 levels, and to become Net Zero by 2050. In June, the European Commission has been consulting on an EU climate target for 2040. A communication, accompanied by an impact assessment on this regard, will be published in 2024.
The consultation raises questions about the future role of the EU Climate Policy, including the contribution of land based and carbon removals in the agricultural sector, that is responsible for 13% of EU’s GHS [1].
The European Court of Auditors has tasked the European Commission to come before December 2023 with a potential study to analyse the feasibility of extending emission trading to agriculture after 2030. The consultants in charge of developing this study opened a public consultation to stakeholders in June 2023.
This meeting was intended as a brainstorming roundtable with a small group of invited stakeholders and policy makers to brainstorm on how feasible is pricing agricultural emissions and rewarding climate action in the land sector.
[1] ECA (2021). Common Agricultural Policy and climate. Special Report. Pp.6. Available at: https://op.europa.eu/webpub/eca/special-reports/cap-and-climate-16-2021/en/#:~:text=The%20CAP%20mostly%20finances%20measures,(20%20%25%20of%20emissions). (Accessed on 19 June 2023).
Agenda DAFC Slides

Joint Stakeholder Roundtable : Impact of CBAM certificates on EU ETS
2023-11-23 10:30 - 12:30 | ERCST Rue Archimède 61, Bruxelles, Rue Archimède 61, Bruxelles, 1000, Belgium
This was an in-person event.
Since 2019, ERCST has gained expertise in BCAs and carbon leakage in the EU, guiding the CBAM legislation from its early stages and facilitating informed discussions with global stakeholders.
Redshaw Advisors provides strategic insights into EU ETS legislation, including CBAM, cost forecasts, MRV requirements, and risk management for entities impacted by EU ETS and new importers.
The CBAM regulation, effective from 2023, requires importers of carbon-intensive goods to purchase CBAM certificates from 2026, with CO2 emissions monitoring starting in October 2023. These certificates, pegged to the EU ETS carbon price, will not be tradable, preventing hedging and potentially leading to price speculation.
This meeting was intended as a roundtable with a small group of invited stakeholders and policy makers to brainstorm the potential impact of CBAM certificates on the EU ETS price and hedging. It brought together EU experts in the areas of law, economics and policy to explore the critical underlying questions and assess proposals to address them.
Agenda

Expert Stakeholder Consultation: 2024 State of the EU ETS Report (Online Roundtable)
2023-12-19 10:00 - 12:00 | ERCST Rue Archimède 61, Bruxelles, Rue Archimède 61, Bruxelles, 1000, Belgium
This was an online event.
This meeting was intended as a stakeholder/expert workshop with a small group of invited stakeholders and policy makers, which will brainstorm on the outline and content of the 2024 State of the EU ETS Report[1]. This will be the ninth annual report on the State of the EU ETS and builds on the reports produced by this group of authors, and other partners, in the last six years. The 2023 edition is available through this link.
The Report is intended as a “snapshot”, providing policymakers and stakeholders with an overview of how the EU ETS is doing by April of each year, based on previous year data.
The topics/chapters that were discussed are:

Regulatory developments (EU and international)
Market sentiment
Environmental delivery
Socio-economic delivery
Market functioning

For each topic, the authors presented the expected outline and content, which will allow for an in-depth discussion with the participants, and to address any gaps, or make any corrections needed.
[1] The 2024 State of the EU ETS Report is a joint effort between ERCST, BloombergNEF, and the Wegener Centre for climate and global change at the University of Graz.
Agenda

Stakeholder Roundtable: Future of the EU ETS
2024-01-24 10:00 - 13:00 | ERCST Rue Archimède 61, Bruxelles, Rue Archimède 61, Bruxelles, 1000, Belgium
The revised EU ETS Directive was adopted on May 10th, 2023, and should apply in 2024. It updated the rules and conditions for the operation of the IV Phase of the EU ETS (2021-2030). In the meantime, the European Commission launched a study on “Issues and options for EU emissions trading after 2030 ”. It will advise the Commission on main issues and options.
The analysis will target Phase V of the EU ETS, starting in 2031, and should be ready ahead of the forthcoming European Commission proposal to review of the European Climate Law and 2040 target, expected for the 1st quarter of 2040. This session was the first meeting of this workstream, part of a process that ERCST is putting into place as an independent review to have the EU institutions and EU stakeholders in this important debate.
[1] DG CLIMA (2022): Study on Issues and Options for EU Emissions Trading after 2030. CLIMA/2022/OP/0012. Available at: https://etendering.ted.europa.eu/cft/cft-display.html?cftId=12202 (Accessed on 16 November 2023)
Agenda ERCST Slides PIK Slides

Expert Stakeholder Consultation: 2024 State of the EU ETS Report
2024-03-07 10:00 - 12:00 | ERCST Rue Archimède 61, Bruxelles, Rue Archimède 61, Bruxelles, 1000, Belgium
“Important! Online participation is only possible for attendees located outside Brussels. Please be aware that Zoom access will not be available if you are in Brussels.”
This meeting was by invitation only.
This meeting was intended as a brainstorming meeting with a small group of invited stakeholders and policy makers, which brainstormed on the presentation of the 2024 State of the EU ETS Report[1], to be released on 14 May. This will be the ninth annual report on the State of the EU ETS and builds on the reports produced by this group of authors, and other partners, in the last eight years. The 2023 edition is available through this link.
The authors presented the expected content, which allowed for a brainstorming discussion with stakeholders to address any gaps, or make any corrections needed, ahead of the final presentation of the report in May.
[1] The 2023 State of the EU ETS Report is a joint effort between ERCST, BloombergNEF, and the Wegener Centre for climate and global change at the University of Graz.
Agenda

Stakeholder Roundtable: Future of the EU ETS - Carbon removals
2024-03-11 16:00 - 17:30 | online
This was an online event.
This meeting is by invitation only. If you are interested in attending, please register through the link below.
*Registrations for this event are closed.
The EU ETS is seen as one the important drivers since it came into operation in 2005. However, as we reach end of 2020’s and forward middle of 2030, there are many issues that need to be discussed – fundamentally if the EU ETS is the right instrument as we reach towards zero allowances and what architecture and governance it should take.
This session discussed the role of negative emissions and carbon removal technologies in the existing EU ETS, and, if they were to be included, under what constraints. This event is a follow-up to the ERCST’s roundtable taking place in January and is part of a process that ERCST is putting in place as an independent policy review of the EU ETS post 2030.
Agenda ERCST slides Hydro slides UBA slides

The Future of Agriculture in the EU ETS - Public Event
2024-03-22 10:00 - 12:00 | ERCST Rue Archimède 61, Bruxelles, Rue Archimède 61, Bruxelles, 1000, Belgium
This was an in-person event.
* Registrations are closed.
Agriculture is responsible for 13% of EU’s GHS[1], and the sector’s emissions have not decreased since 2010. Following the example of the recent extension of carbon pricing to road transport and buildings, emission trading in agriculture could provide the right incentives to decarbonise this sector.
This public event explored with stakeholders and policy makers the role agriculture can play as part of net zero, with a focus on its potential extension to carbon pricing. It addressed how feasible is pricing agricultural emissions and rewarding climate action in the land sector.
[1] ECA (2021). Common Agricultural Policy and climate. Special Report. Pp.6. Available at: https://op.europa.eu/webpub/eca/special-reports/cap-and-climate-16-2021/en/#:~:text=The%20CAP%20mostly%20finances%20measures,(20%20%25%20of%20emissions). (Accessed on 6 November 2023).
Agenda DG CLIMA Slides

2024 State of the EU ETS Report - Launch Event (Public Event)
2024-05-14 15:00 - 17:00 | University Foundation, Rue d’Egmont, 11, Brussels, 1000, Belgium
This was an in-person event. “Important! Online participation was only allowed for attendees located outside Brussels”
*registrations are closed.
This was the launch event of the 2024 State of the EU ETS Report[1]. During this event the report was presented by the authors and discussed by commentators. This was the ninth annual report on the State of the EU ETS and builded on the reports produced by this group of authors, and other partners, in the last years. The 2023 edition is available through this link.The 2024 edition is available through this link.
The annual “State of the EU ETS” Report aims to provide an independent contribution to the policy debate, which is needed to ensure that the EU ETS is “fit for purpose”. The Report is intended as a “snapshot”, providing policymakers and stakeholders with an overview of how the EU ETS is doing by April of each year, based on previous year data. This event will cover the 2024 Report. This year’s edition reflects the track record of the ETS last year, its recent developments, and the role the ETS is expected to play in the longer term.
[1] The 2024 State of the EU ETS Report is a joint effort between ERCST, Compass Lexecon, BloombergNEF, and the Wegener Centre for climate and global change at the University of Graz.
Agenda Recording Slides

Stakeholder Roundtable: Future of the EU ETS – ETS Coverage
2024-07-10 09:30 - 12:30 | ERCST Rue Archimède 61, Bruxelles, Rue Archimède 61, Bruxelles, 1000, Belgium
This is an in person event. “Important! Online participation is only allowed for attendees located outside Brussels”
This meeting is by invitation only. If you are interested in attending, please contact pnouallet@ercst.org.
The Future of the EU ETS is a project that ERCST is putting into place as an independent review with the participation in this important debate of EU institutions and EU stakeholders. In the framework of this sub-workstream, ERCST will organise thematic events along the year focused on key issues for the EU ETS. This will be the first of seven reports ERCST will produce in the framework of the Future of the EU ETS project.
This meeting is intended as a brainstorming meeting for a small group of invited stakeholders and policy makers, in the framework of ERCST’s ‘Future of the EU ETS’ project. The first theme to be addressed by the project concerns EU ETS Coverage, with a homonymous Report to be released in September 2024.
Draft Agenda

Future of the EU ETS: ETS Coverage - Launch Event
2024-09-26 11:00 - 13:00 | ERCST Rue Archimède 61, 1000 Bruxelles
This was the launch event of the Future of emissions trading in the EU Coverage Report, under the framework of the Future of emissions trading in the EU project. The “Future of emissions trading in the EU” is a process ERCST is putting in place to provide original analytical insights, pinpoint challenges, and propose solutions for the evolution of the emissions trading in the EU during the second Phase of phase IV (2025-2030) and post-Phase IV.
The project will investigate the system’s impact on key sectors such as power and industry and explore implications for governance relevant to EU policymakers. Within this process, a series of reports covering different aspects of the future of the EU ETS will be released throughout the year.
This event covered the Future of emissions trading in the EU Coverage Report, this being the first report of the Future of emissions trading in the EU project. During this event the report was presented by the authors and discussed by commentators.
Report
YouTube
ERCST Slides
CEWEP Slides
Fuels Europe Slides
Agenda

Stakeholder Roundtable: Future of Emission Trading in the EU – Role of Emissions Trading in EU climate policy
2024-11-05 10:30 - 12:30 | ERCST Rue Archimède 61, Bruxelles, Rue Archimède 61, Bruxelles, 1000, Belgium
This was an in person event. “Important! Online participation is only allowed for attendees located outside Brussels”
This meeting was by invitation only.
The Future of the Emission Trading in the EU is a project that ERCST is putting into place as an independent review with the participation in this important debate of EU institutions and EU stakeholders. In the framework of this sub-workstream, ERCST has been organising thematic events along the year focused on key issues for the Emission Trading in the EU. This is the second of seven reports ERCST will produce in the framework of the Future of the Emission Trading in the EU project.
This meeting is intended as a brainstorming meeting for a small group of invited stakeholders and policy makers, in the framework of ERCST’s ‘the Emission Trading in the EU ’ project. The second theme to be addressed by the project concerns Role of Emissions Trading in EU climate policy, with a homonymous Report to be released in December 2024.
Final Agenda

Stakeholder Roundtable: 2025 State of the EU ETS Report
2024-12-17 10:00 - 12:00 | ERCST Rue Archimède 61, Bruxelles, Rue Archimède 61, Bruxelles, 1000, Belgium
This was an in person event. “Important! Online participation is only allowed for attendees located outside Brussels”
This meeting was by invitation only.
This meeting was intended as a stakeholder/expert workshop with a small group of invited stakeholders and policy makers, which brainstormed on the outline and content of the 2025 State of the EU ETS Report[1]. This will be the tenth annual report on the State of the EU ETS and builds on the reports produced by this group of authors, and other partners, in the last years. The 2024 edition is available through this link.
The State of the EU ETS Report is intended as a “snapshot”, providing policymakers and stakeholders with an overview of how the EU ETS is doing by April of each year, based on previous year data. For each topic, the authors presented the expected draft outline and content, which allowed for an in-depth discussion with the participants, and to address any gaps, or make any corrections needed.
[1] The 2025 State of the EU ETS Report is a joint effort between ERCST, Compass Lexecon, BloombergNEF, and the Wegener Centre for climate and global change at the University of Graz.
Agenda

Stakeholder Consultation – 2025 State of the EU ETS Report
2025-03-05 10:00 - 12:00 | ERCST Rue Archimède 61, 1000 Bruxelles
This is an in-person event. “Important! Online participation was only allowed for attendees located outside Brussels”
This meeting was by invitation only.
This meeting was intended as a brainstorming meeting with a small group of invited stakeholders and policy makers, which will brainstorm on the draft presentation and content of the 2025 State of the EU ETS Report[1]. It follows the stakeholder session ERCST hosted on December 17. This will be the tenth annual report on the State of the EU ETS and builds on the reports produced by this group of authors, and other partners, in the last years. The 2024 edition is available through this link.
The Report is intended as a “snapshot”, providing policymakers and stakeholders with an overview of how the EU ETS is doing by April of each year, based on previous year data. For each topic, the authors will present the expected draft presentation and content, which will allow for an in-depth discussion with the participants, and to address any gaps, or make any corrections needed.
[1] The 2025 State of the EU ETS Report is a joint effort between ERCST, Compass Lexecon, BloombergNEF, and the Wegener Centre for climate and global change at the University of Graz.
Agenda

Stakeholder Roundtable – Future of Emissions Trading in the EU: Carbon Dioxide Removals (CDRs)
2025-05-12 10:30 - 12:30 | ERCST Rue Archimède 61, 1000 Bruxelles
This is an in person event. “Important! Online participation is only allowed for attendees located outside Brussels”
This meeting is by invitation only. If you are interested in attending, please contact pnouallet@ercst.org.
This meeting is intended as a brainstorming meeting for a small group of invited stakeholders and policy makers, in the framework of ERCST’s ‘Future of the Emissions Trading in the EU’ project.
The “Future of Emissions Trading System in the EU” is a process that ERCST is putting in place to provide original analytical insights, pinpoint challenges, and propose solutions for the evolution of the Emissions Trading System in the EU with the participation in this important debate of EU institutions and EU stakeholders. In the framework of this sub-workstream, ERCST has been organising thematic events along the year focused on key issues for the Emission Trading in the EU. This is the fourth of seven reports ERCST will produce in the framework of the Future of the Emission Trading in the EU project.

This stakeholder session will feed the final Report on “Carbon Dioxide Removals (CDRs)”, to be launched in June.
Draft Agenda

2025 State of the EU ETS Report - Launch Event (Public Event)
2025-05-21 15:00 - 17:00 | University Foundation, Rue d’Egmont, 11, Brussels, 1000, Belgium
This was an in-person event.
This is the launch event of the 2025 State of the EU ETS Report[1]. During this event the report will be presented by the authors and discussed by commentators. This will be the tenth annual report on the State of the EU ETS and builds on the reports produced by this group of authors, and other partners, in the last years. The 2024 edition is available through this link.
The annual “State of the EU ETS” Report aims to provide such an independent contribution to the policy debate, which is needed to ensure that the EU ETS is “fit for purpose”. The Report is intended as a “snapshot”, providing policymakers and stakeholders with an overview of how the EU ETS is doing by April of each year, based on previous year data. This event will cover the 2025 Report. This year’s edition reflects the track record of the ETS last year, its recent developments, and the role the ETS is expected to play in the longer term.
[1] The 2025 State of the EU ETS Report is a joint effort between ERCST, Compass Lexecon, BloombergNEF, and the Wegener Centre for climate and global change at the University of Graz.
Paper
Slides
Recording
Agenda

Stakeholder Roundtable – Future of Emissions Trading in the EU: Agriculture ETS
2025-09-03 10:00 - 12:00 | Curalia, Rue des Deux Églises 33, 1000 Bruxelles, Rue des Deux Églises 33, Bruxelles, 1000, Belgium
!!! VENUE CHANGE !!! – Event will now be held at Curalia, Rue des Deux Églises 33, 1000 Bruxelles

This is an in person event. “Important! Online participation is only allowed for attendees located outside Brussels”

This meeting is by invitation only. If you are interested in attending, please contact ncaruana@ercst.org.
This meeting is intended as a brainstorming meeting for a small group of invited stakeholders and policy makers, in the framework of ERCST’s ‘Future of the Emissions Trading in the EU’ project. The fifth theme to be addressed by the project concerns ‘Agriculture ETS’, with the Report to be released in October 2025.
The “Future of Emissions Trading System in the EU” is a process that ERCST is putting in place to provide original analytical insights, pinpoint challenges, and propose solutions for the evolution of the Emissions Trading System in the EU with the participation in this important debate of EU institutions and EU stakeholders. In the framework of this sub-workstream, ERCST has been organising thematic events along the last 2 years focused on key issues for the Emission Trading in the EU. This is the fifth of seven reports ERCST will produce in the framework of the Future of the Emission Trading in the EU project.
Draft Agenda

Launch Event - Future of Emissions Trading in the EU: Agriculture ETS (Public Event)
2025-10-14 10:00 - 12:00 | Conseil central de l’économie, Avenue de la Joyeuse Entrée, 17, 1040 Bruxelles
This was an in person event. “Important! Online participation is only allowed for attendees located outside Brussels”
This was the launch event of the Agriculture ETS Report, under the framework of the Future of the EU ETS project. The “Future of the EU ETS” was a process ERCST is putting in place to provide original analytical insights, pinpoint challenges, and propose solutions for the evolution of the EU ETS during the second Phase of phase IV (2025-2030) and post-Phase IV.
Following the example of the recent extension of carbon pricing to road transport and buildings, emission trading in agriculture could provide the right incentives to decarbonise this sector.
This event covered the Agriculture ETS Report, this being the fifth report of the Future of the EU ETS project. The authors presented their findings, followed by a discussion with participants.
Agenda Report Slides Recording
Draft Agenda

Stakeholder Roundtable - Future of the EU ETS: EU ETS - CBAM Strawman
2025-10-21 14:00 - 16:00 | conseil central de l’economie, Avenue d’auderghem 20, 1000 Brussels
This is an in person event. “Important! Online participation is only allowed for attendees located outside Brussels”
This meeting is by invitation only. If you are interested in attending, please contact ncaruana@ercst.org.
This meeting is intended as a brainstorming session for a small group of invited stakeholders and policymakers, within the framework of ERCST’s initiative on the “future of emissions trading in the EU”. The final theme under discussion in this project is the “EU ETS – CBAM Strawman”, with the report to be released in December 2025.
The “Future of Emissions Trading System in the EU” is a process that ERCST is putting in place to provide original analytical insights, pinpoint challenges, and propose solutions for the evolution of the Emissions Trading System in the EU with the participation in this important debate of EU institutions and EU stakeholders. In the framework of this sub-workstream, ERCST has been organising thematic events along the last 2 years focused on key issues for the Emission Trading in the EU.
Draft Agenda

ERCST & Veyt 2026 Review of the EU ETS and MSR: Whitepaper Launch Event (Public)
2025-10-29 09:30 - 11:30 | Conseil central de l’économie, Avenue de la Joyeuse Entrée, 17, 1040 Bruxelles
Register in person Register online
This event, organized in partnership between ERCST and Veyt, marks the launch of a new whitepaper by Veyt, exploring reform options for the Market Stability Reserve (MSR) under the EU Emissions Trading System (EU ETS). The study presents multiple scenarios, and model runs assessing the impact of different design choices on market balance, price trajectories, and policy trade-offs. Veyt’s study focuses on a dynamic release function accounting for increasing future market tightness as well as the interaction with supply adjustments resulting from the RePowerEU programme.
In line with the EU ETS Directive, the European Commission is mandated to annually assess the system’s functioning and future design. In June 2024, the Commission initiated a call for tenders to support the evaluation of the EU ETS and the Market Stability Reserve (MSR), as well as the 2026 review of both mechanisms. Building on this, in April 2025, the Commission launched a 12-week public consultation to gather stakeholder views on the evaluation and review of the EU ETS and MSR, aiming to ensure the system continues to contribute effectively to the EU’s climate neutrality goals by 2050.
Complementing the Commission’s official review, independent assessments play a crucial role in evaluating the EU ETS’s functionality and delivery.
The authors will present their findings, followed by a moderated roundtable discussion. Participants from industry, financial institutions, Member State governments, civil society, and the European Commission.
Draft Agenda

Stakeholder Roundtable: 2026 State of the EU ETS Report
2026-01-13 10:00 - 12:00 | conseil central de l’economie, Avenue d’auderghem 20, 1000 Brussels
This was an in person event. “Important! Online participation is only allowed for attendees located outside Brussels”
This meeting is by invitation only. If you wish to attend, please email tpaperini@ercst.org, cmeinardi@ercst.org
This meeting was intended as a stakeholder/expert workshop with a small group of invited stakeholders and policy makers, which brainstormed on the outline and content of the 2026 State of the EU ETS Report [1]. This will be the eleventh annual report on the State of the EU ETS and builds on the reports produced by this group of authors, and other partners, in the last years. The 2025 edition is available through this link.
The Report is intended as a “snapshot”, providing policymakers and stakeholders with an overview of how the EU ETS is doing by April of each year, based on previous year data.
For each topic, the authors presented the expected draft outline and content, which allowed for an in-depth discussion with the participants, and to address any gaps, or make any corrections needed.
[1] The 2026 State of the EU ETS Report is a joint effort between ERCST, Compass Lexecon, BloombergNEF, and the Wegener Centre for climate and global change at the University of Graz.
Agenda

Carbon Leakage under CBAM and Free Allocation - 2nd Stakeholder Meeting
2026-01-28 14:00 - 16:00 | location tbc
This meeting was by invitation only. If you are interested, please contact tpaperini@ercst.org
ERCST and the Climate Economics Chair (CEC) are carrying out a study on the long-term effects of free allocation versus full auctioning on industry, the carbon price, and investment signals. The project will develop and run a model that incorporates international trade and carbon leakage, including the interplay between free allocation and CBAM.
The work will encompass a number of iterative consultations with stakeholders, and will result in a paper in early 2026 that will provide evidence-based policy recommendations to inform future reforms of EU ETS and CBAM.
The 2nd Stakeholder meeting included a presentation on the preliminary model results. These included insights into how different allocation methods affect carbon prices, firm behavior, and industrial structure. Using a combination of theoretical modeling and input-output linkages, the project will quantify the extent of value chain carbon leakage and evaluate policy options such as extending the CBAM to downstream sectors and adjusting for carbon cost pass-through.
Draft Agenda

State of EU ETS - Second Stakeholders Meeting
2026-03-11 10:00 - 12:00 | conseil central de l’economie, Avenue d’auderghem 20, 1000 Brussels
This is an invitation only event. If interested in joining please contact cmeinardi@ercst.org or tpaperini@ercst.org
Important: this is an in person meeting. Online participation is allowed only for those based outside of Brussels.

This second meeting is intended as a stakeholder/expert workshop with a small group of invited stakeholders and policy makers, which will brainstorm on the outline and content of the 2026 State of the EU ETS Report [1]. This will be the eleventh annual report on the State of the EU ETS and builds on the reports produced by this group of authors, and other partners, in the last years. The 2025 edition is available through this link.
The Report is intended as a “snapshot”, providing policymakers and stakeholders with an overview of how the EU ETS is doing by April of each year, based on previous year data.
For each topic, the authors will present the expected draft outline and content, which will allow for an in-depth discussion with the participants, and to address any gaps, or make any corrections needed.
[1] The 2026 State of the EU ETS Report is a joint effort between ERCST, Compass Lexecon, BloombergNEF, and the Wegener Centre for climate and global change at the University of Graz.

Quo Vadis ETS: Challenges and Solutions
2026-03-23 16:00 - 18:00 | University Foundation, Rue d’Egmont, 11, Brussels, 1000, Belgium
This was an-invitation only event.
ERCST, since its inception, has been a strong advocate of market solutions and economic instruments to address environmental challenges and find sustainable solutions. At the same time ERCST has also consistently emphasized that a strong and prosperous Europe requires a strong industrial base.
The EU finds itself now at an important inflection point: the Climate Law specifies very ambitious targets for 2040 and 2050, while industrial competitiveness is under significant pressure. This is reflected in the closure of installations, a lack of investments in energy-intensive industries, and increasingly significant job losses.
The EU ETS, as one of the key pillars of EU climate change policy has delivered an increasingly strong explicit carbon price, as well as a rising effective carbon price(cost) driven by the decreasing cap, the introduction of CBAM and strengthened benchmarks.
Leading to, and following the recent meeting in Antwerp, which focused on competitiveness and touched upon the EU ETS, there have been voices advocating strong measures such as pausing the EU ETS and/or the CBAM. Others, while agreeing that strong and urgent measures are needed, emphasize the need for measures that address the cost while preserving the flexibility and usefulness of the price signal. In Antwerp, industry demands seemed to focus on energy and carbon cost, especially as they relate to the adjustment in benchmarks.
This session was intended for a policy level discussion on the direction of the policy debate for the EU ETS ahead of the expected European Commission proposal in July 2026. The panel was invited to elaborate on the problems that need to be addressed, in the short and long term, but also how to address them and what are the broader consequences of their views on the way forward. Costs are emerging as a key issue, with the additional question of who bears the costs under different models.
Draft Agenda Recording

2026 Review of EU ETS - Stakeholder meeting
2026-04-01 15:00 - 17:00 | online
This is an invitation-only event. If interested in participating, please email: cmeinardi@ercst.org, tpaperini@ercst.org.
This is an online event.

2026 will see a review of the EU Emissions Trading System for maritime, aviation and stationary installations (EU ETS) Directive, including the Market Stability Reserve (MSR) Decision. Other key developments to be considered include the gradual phase-out of free allocation and the implementation of the Carbon Border Adjustment Mechanism (CBAM), while uncertainties around ETS2 implementation, possible consideration of integration of International Credits to cover up to 5% of emission reductions, potential inclusion of CDRs, and the potential inclusion of agriculture in ETS or similar systems raise the question of how much the ETS will be affected and what issues will stem from them. Furthermore, while the ETS effectively incentivizes decarbonization on the supply side, it does not provide incentives for demand for low carbon products.

The review aims to evaluate whether the current design of the ETS and the MSR remains effective and fit for purpose under these conditions.

The European Commission is conducting the review in the third quarter of 2026 through an evaluation and impact assessment process supported by stakeholder consultation.

Therefore, this stakeholder meeting is thought as an initial discussion with selected stakeholders on the logic behind the 2026 ETS Review.

Launch Event - 2026 ETS Review
2026-04-23 10:00 - 12:00
This is the Launch Event for the work that ERCST is doing on the Review of the EU ETS. During this event, we will launch “Review of the EU ETS: Challenges and Policy Levers to address them”. The session will highlight key issues to be discussed in the upcoming Review of the EU ETS, and the levers in the EU ETS that can be used to address them.
The report issued in this launch is intended to provide a logic and a story for the discussion that should, in our view, take place under the upcoming Review of the EU ETS. It is not intended to go into technical analysis and search for solutions to individual issues, but try and provide ideas on how the agenda for the review should be set.
Agenda Slides Report Recording

Launch Event - Carbon Leakage under CBAM and Free Allocation
2026-05-13 10:30 - 12:30 | conseil central de l’economie, Avenue d’auderghem 20, 1000 Brussels
ERCST and the Climate Economics Chair (CEC) are carrying out a study on the long-term effects of free allocation versus full auctioning on industry, the carbon price, and investment signals. The project will develop and run a model that incorporates international trade and carbon leakage, including the interplay between free allocation and CBAM.
The work encompassed a number of iterative consultations with stakeholders.
This public launch event will present the analytical findings and policy messages, targeting EU policymakers, stakeholders, and academics.

Agenda Slides Paper

2026 State of ETS - Launch
2026-05-20 15:00 - 16:30 | Conseil central de l’économie, Avenue de la Joyeuse Entrée, 17, 1040 Bruxelles
This is the launch event of the 2026 State of the EU ETS Report[1]. During this event the report will be presented by the authors and discussed by commentators. This will be the tenth annual report on the State of the EU ETS and builds on the reports produced by this group of authors, and other partners, in the last years. The 2025 edition isavailable through this link.
The European Commission is required to annually assess, according to the EU ETS Directive, the functioning of theEU ETS and report back to the EU Parliament and Council. While the European Commission has its role to play inproviding an official report, it is also important that independent review and assessment of the functioning and delivery of the EU ETS takes place.
The annual “State of the EU ETS” Report aims to provide such an independent contribution to the policy debate,which is needed to ensure that the EU ETS is “fit for purpose”. The Report is intended as a “snapshot”, providing policymakers and stakeholders with an overview of how the EU ETS is doing by April of each year, based on previous year data.
This event will cover the 2026 Report. This year’s edition reflects the track record of the ETS last year, its recent developments, and the role the ETS is expected to play in the longer term.
[1] The 2026 State of the EU ETS Report is a joint effort between ERCST, BloombergNEF, Compass Lexecon.
Draft Agenda Recording
