On 17 July 2026, the European Commission published its long-awaited EU ETS review. Markets had braced for a package that would flood the system with extra allowances and push carbon prices down.
The proposal turned out milder than feared: the deepest changes are back-loaded past 2030, and the headline measures were already priced in. We break down what actually changes, from the Market Stability Reserve to free allocation and aviation, and why the outcome reinforces our bullish view on EUA prices.
