The EU Emission Trading Scheme (ETS)

Reform Ahead

To date, the ETS finds itself facing several challenges, i.a. in the form of a growing surplus of allowances. In the short term this surplus risks undermining the orderly functioning of the carbon market; in the longer term it could affect the ability of the EU ETS to meet more demanding emission reduction targets cost-effectively.

Therefore, structural reform measures, such as the Market Stability Reserve or the inclusion of further sectors, e.g. transport into the scope of the ETS are being discussed.

From an economic point of view it will be crucial to provide a stable framework that enables predictability for investments.

At the roundtable representatives from EU institutions as well as from industry and academia will exchange on the envisaged ETS reforms.

Roundtable Discussion: The EU Emission Trading Scheme (ETS) – Reform Ahead

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Environment

Reform of the EU ETS 1 and accompanying instruments

The reforms to the European Union’s Emissions Trading System (EU ETS 1) for the energy sector, energy-intensive industries, and aviation and maritime transport, due to take place in 2026, must address two key aspects in particular.

Expertise 23. February 2026 Thomas Puls

Compendium 5.7: CO2 Regulation of Road Transport in Europe

With the Compendium CO2 Regulation in Europe, the IW has been providing the interested public with a comprehensive collection of data on the development of CO2 emissions from passenger car traffic in the European Union, as well as on the applicable regulatory framework, since 2015.