Insights > Analysis > ANALYSIS: EU ETS reform proposals “materially bearish”, to add hundreds of millions to post-2030 carbon allowance budget

ANALYSIS: EU ETS reform proposals “materially bearish”, to add hundreds of millions to post-2030 carbon allowance budget

Published 16:26 on July 17, 2026 / Last updated at 17:09 on July 17, 2026 / / CO2 Management (CCUS, Engineered Removals), EMEA (Compliance Markets & Taxes, Europe), Insights (Analysis), International (Aviation/CORSIA, CBAM & Tariffs, Paris Article 6/PACM, Shipping), Net Zero Transition (Industrial Decarbonisation, Investment, Reporting & Disclosure, Power/Electrification, Transport & Heating Fuels)

Carbon Pulse Premium

The European Commission's proposed EU ETS reforms are bearish for long-term carbon prices in the bloc and could add as many as 450 million additional permits to the market's carbon budget between 2031-40, as a looser emissions cap and allowances for carbon removals more than offset tighter Market Stability Reserve (MSR) rules, analysts have said.
The European Commission's proposed EU ETS reforms are bearish for long-term carbon prices in the bloc and could add as many as 450 million additional permits to the market's carbon budget between 2031-40, as a looser emissions cap and allowances for carbon removals more than offset tighter Market Stability Reserve (MSR) rules, analysts have said.


A subscription is required to read this content. Subscribe today to Carbon Pulse Premium to access our unrivalled news and intelligence, as well as other content including all job listings. Click here for details.

We offer a FREE TRIAL to each of our subscription services and it only takes a minute to register. If you already have a Carbon Pulse account, login here.

This page is intended to be viewed online and may not be printed.
As per our terms and conditions, the republication or redistribution of Carbon Pulse content can result in the suspension or termination of your subscription.