Launched during a summer of fossil-fuelled climate breakdown marked by heatwaves and wildfires, the European Commission’s carbon market revision backtracks on climate action. The new proposal actively weakens the effectiveness of Europe’s flagship climate policy, and risks undermining the achievement of the EU’s 2040 and 2050 climate targets.
EU policymakers should not fall for this trap: the ETS is essential for EU companies planning to invest in a cleaner industrial future.
MW, Fern, WWF EPO, Lifescape Project, and Partnership for Policy Integrity will guide you through their request for internal review
Introduced in 2018, the Market Stability Reserve (MSR) functions as the oversupply control mechanism of the EU Emissions Trading System (ETS). Created to address structural oversupply on the market, every year it extracts a share of surplus emissions allowances. The MSR came to the rescue of the misfiringETS by ending a decade of low market confidence and rock bottom prices. In practice it has proven effective, syphoning oversupply out of the system and invalidating (or deleting) over 3.4 billion EU Allowances (EUAs).
The Commission planted a carbon bomb in its proposal to reform the supply control mechanism within the EU’s carbon pricing scheme for road transport and buildings.
Carbon Market Watch’s 10-point plan to keep the EU Emissions Trading System on track to serve the climate and society.
Read Carbon Market Watch’s 10 point plan designed to make sure lawmakers keep this most crucial EU climate policy on track
Carbon Market Watch outlines the priorities for the upcoming revision of the EU Emissions Trading System
7 May 2026 | 11:00-12:00 CET | Online Join Climact and Carbon Market Watch for a deep dive into the future of the EU ETS. With the EU having committed to cutting net greenhouse gas emissions by 90% by 2040, and a scheduled update of the EU ETS and the Market Stability Reserve (MSR) set …
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