How Europe’s carbon market can boost clean
investment: Design options for the 2026 EU ETS Review

Europe’s industry is entering a decisive phase of transformation amidst changing economic conditions,
geopolitical tensions and the need to align with the EU’s 2040 climate target. The EU Emissions Trading
System needs to evolve in step with the changing environment. The 2026 reform is thus a critical
chance to strengthen its cost-effective decarbonisation role – sending clear price signals to unlock
investment and drive import independence, while cutting emissions.