EMEA > Compliance Markets & Taxes > Major risk of EU ETS oversupply as reform narrative focuses on loosening market -report

Major risk of EU ETS oversupply as reform narrative focuses on loosening market -report

Published 12:25 on May 19, 2026 / Last updated at 12:25 on May 19, 2026 / / EMEA (Compliance Markets & Taxes, Europe), Net Zero Transition (Industrial Decarbonisation, Power/Electrification)

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Europe’s carbon market risks drifting into dangerous oversupply territory if policymakers weaken emissions trading rules by releasing more allowances into the system, according to new analysis that warns the EU may be on the cusp of undermining its own 2040 climate target.
Europe’s carbon market risks drifting into dangerous oversupply territory if policymakers weaken emissions trading rules by releasing more allowances into the system, according to new analysis that warns the EU may be on the cusp of undermining its own 2040 climate target.


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