News

Europe’s Emissions Trading System in the Spotlight: Its Future Hinges on Industry Pressure

– 18 February 2026

Description

As the 2026 review of the EU ETS approaches, policy uncertainty is resurfacing, putting the equilibrium between market discipline and political discretion under renewed strain.

The EU ETS is a mature and highly developed market. Its liquidity, broad participation, and widely referenced carbon price are precisely what give it strength and credibility. But that strength is also a source of vulnerability.

As the ETS becomes increasingly central to Europe’s climate and industrial strategy, it is inevitably pulled into political debates it was never designed to settle.

Diverging positions among EU political leaders on the future of the system, and on how it should contribute to Europe’s competitiveness, have recenlty influenced market expectations and pricing dynamics.

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