EMEA > Compliance Markets & Taxes > ANALYSIS: EU carbon market to remain “tight” until 2035, despite proposed ETS reforms

ANALYSIS: EU carbon market to remain “tight” until 2035, despite proposed ETS reforms

Published 14:07 on July 28, 2026 / Last updated at 14:07 on July 28, 2026 / / EMEA (Compliance Markets & Taxes, Europe)

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The EU's Emissions Trading System (ETS) is set to remain tight through the mid-2030s despite reform plans that add more supply to the market, as many of the new allowances are conditional and the linear reduction factor (LRF) is steeper than expected in the early 2030s, according to analysts.
The EU's Emissions Trading System (ETS) is set to remain tight through the mid-2030s despite reform plans that add more supply to the market, as many of the new allowances are conditional and the linear reduction factor (LRF) is steeper than expected in the early 2030s, according to analysts.


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