Free allocation extension among most likely EU ETS policy reforms, say analysts

Published 14:06 on February 24, 2026 / Last updated at 14:34 on February 24, 2026 / / EMEA (Compliance Markets & Taxes, Europe), International (CBAM & Tariffs), Net Zero Transition (Industrial Decarbonisation, Power/Electrification)

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A slower phaseout of free allocation, a softer emissions cap trajectory, and changes to the Market Stability Reserve (MSR) are the main levers available to lawmakers looking to reform the EU carbon market, an investment bank said in a briefing on Tuesday.
A slower phaseout of free allocation, a softer emissions cap trajectory, and changes to the Market Stability Reserve (MSR) are the main levers available to lawmakers looking to reform the EU carbon market, an investment bank said in a briefing on Tuesday.


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