EMEA > Compliance Markets & Taxes > EU faces short-term job losses from higher carbon prices, ECB paper finds

EU faces short-term job losses from higher carbon prices, ECB paper finds

Published 15:21 on May 26, 2026 / Last updated at 15:21 on May 26, 2026 / / EMEA (Compliance Markets & Taxes, Europe), Net Zero Transition (Industrial Decarbonisation)

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The EU’s flagship Emissions Trading System (ETS) puts a short-term drag on jobs when allowance prices rise unexpectedly, with workers in carbon-intensive roles hit hardest and green job gains failing to fully offset the losses, according to new research by the European Central Bank.
The EU’s flagship Emissions Trading System (ETS) puts a short-term drag on jobs when allowance prices rise unexpectedly, with workers in carbon-intensive roles hit hardest and green job gains failing to fully offset the losses, according to new research by the European Central Bank.


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