ERCST

Quo Vadis ETS: Challenges and Solutions
2026-03-23 16:00 - 18:00 (Europe/Paris) | 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

Launch Event - Policy options for sustainable mobility: the road to decarbonization
2026-04-01 10:00 - 12:00 | Conseil central de l’économie, Avenue de la Joyeuse Entrée, 17, 1040 Bruxelles
This was the Launch event of ERCST paper “Road transport decarbonization: innovative policy approaches for competitiveness and investment” .
In February 2025, ERCST published its Reflection paper, “Road transport decarbonization: innovative policy approaches for competitiveness and investment” after extensive consultations with a broad range of stakeholders, including representatives from automotive materials, vehicle manufacturers, and energy suppliers. The analysis presented in the Reflection paper highlighted some of the key dimensions and principles that must underpin a neutral analysis of road decarbonization policies.
Building on this assessment, the paper discussed today focuses on regulatory aspects in the area of climate change. It does not attempt to determine the contribution of climate change regulation to the current situation, but rather to put forward new ideas on how climate change objectives can be better achieved, therefore, the focus is on policy options to meet climate change objectives. The goal is to create a policy environment that attracts and retains investment in advanced vehicle technologies, sustainable fuels, and supporting infrastructure, thereby strengthening the EU’s industrial base and ensuring that the transition to climate neutrality also delivers economic and social benefits.
Draft Agenda Slides 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.

Stakeholder Consultation: CBAM in an International Context
2026-04-22 15:00 - 17:00 | online
This was a closed meeting by invitation-only. For information: msangiovanni@ercst.org, hbevernage@ercst.org.
This was an online event.
As the EU CBAM entered its definitive phase and is impacting global climate and trade dynamics, this second report under the Border Carbon Adjustments in the EU – Phase VII workstream examines the subject’s international implications. It situates the mechanism within a rapidly evolving landscape of third-country responses, emerging carbon pricing systems, and growing discussions on interoperability and cooperation.
This report will provide an analysis of how the EU framework interacts with international partners and the broader global landscape it is helping to shape. It will examine emerging responses and dynamics, as well as consider potential avenues for cooperation and engagement. The paper will conclude with reflections and recommendations aimed at supporting the CBAM’s integration in an evolving international context.
This closed stakeholder consultation brought together a group of stakeholders to examine the subject as ERCST continues drafting the report.
Agenda

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
Register in person
Register online
This is an in-person event.
Online participation is permitted only to users outside of Brussels.
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

International Townhall: CBAM in an International Context
2026-06-23 14:30 - 16:30 | online
This an online event. For more information contact: msangiovanni@ercst.org, hbevernage@ercst.org
As the EU CBAM entered its definitive phase and is impacting global climate and trade dynamics, this second report under the Border Carbon Adjustments in the EU – Phase VII workstream examines the subject’s international implications. It situates the mechanism within a rapidly evolving landscape of third-country responses, emerging carbon pricing systems, and growing discussions on interoperability and cooperation.
This report will provide an analysis of how the EU framework interacts with international partners and the broader global landscape it is helping to shape. It will examine emerging responses and dynamics, as well as consider potential avenues for cooperation and engagement. The paper will conclude with reflections and recommendations aimed at supporting the CBAM’s integration in an evolving international context.
This International Townhall will provide the outline of the paper and will bring together policymakers and stakeholders from government, industry and other services to examine the subject as ERCST continues drafting the report.
Register here
Agenda
