Adjusting supply in the EU ETS
The European Commission has proposed adjustments to the EU emissions trading system (EU ETS). Until 2050, these adjustments can lead to 33% more CO₂ emissions in the energy-intensive industry, electricity production, shipping, and aviation, report the Bureau for Economic Policy Analysis (CPB) and PBL Netherlands Environmental Assessment Agency. On the other hand, the expected decline in the price of emission allowances is limited, while the market price stability decreases.
CPB and PBL researched the consequences of two proposed adjustments: an easing of the emissions cap and a reform of the market stability reserve (MSR). Part of these adjustments involves scrapping the so-called invalidation mechanism that permanently removes surplus emission allowances from the market. The analysis looks at the impacts on emissions, emission prices, and market stability through 2050.
Authors
Specifications
- Publication title
- Adjusting supply in the EU ETS
- Publication subtitle
- Significantly higher emissions, barely lower energy costs
- Publication date
- 11 September 2026
- Publication type
- Report
- Page count
- 28
- Publication language
- English
- Product number
- 6239
