Loosening of EU carbon market could derail climate goals, generate major surplus, finds analysis

Published 17:48 on June 10, 2026 / Last updated at 17:48 on June 10, 2026 / / EMEA (Compliance Markets & Taxes, Europe), International (Aviation/CORSIA, Shipping), Net Zero Transition (Industrial Decarbonisation, Power/Electrification)

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Proposed reforms to the European Union's carbon market could significantly weaken the bloc's emission reduction trajectory, flood the market with surplus permits, and undermine the pathway to climate neutrality, according to a new technical assessment by climate policy think tank.
Proposed reforms to the European Union's carbon market could significantly weaken the bloc's emission reduction trajectory, flood the market with surplus permits, and undermine the pathway to climate neutrality, according to a new technical assessment by climate policy think tank.


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