International > Aviation/CORSIA > EU ETS reform risks flooding carbon market, weakening climate ambition, warn researchers

EU ETS reform risks flooding carbon market, weakening climate ambition, warn researchers

Published 13:24 on July 20, 2026 / Last updated at 13:24 on July 20, 2026 / / CO2 Management (CCUS, Engineered Removals), EMEA (Compliance Markets & Taxes, Europe), International (Aviation/CORSIA, CBAM & Tariffs, Paris Article 6/PACM, Shipping), Net Zero Transition (Industrial Decarbonisation, Power/Electrification, Transport & Heating Fuels)

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The European Commission's proposed overhaul of the EU Emissions Trading System (ETS) would create a prolonged glut of carbon allowances that risks suppressing prices, weakening investment signals, and putting the bloc's 2040 climate target in jeopardy, according to a new assessment by a German think tank.
The European Commission's proposed overhaul of the EU Emissions Trading System (ETS) would create a prolonged glut of carbon allowances that risks suppressing prices, weakening investment signals, and putting the bloc's 2040 climate target in jeopardy, according to a new assessment by a German think tank.


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