The 2026 review of the EU ETS

• Florence School of Transnational Governance
• STG Climate

Session as part of EUI Climate Week 2026

The EU Commission is preparing to launch the review of the EU ETS in Q3 2026. The future role of carbon pricing in the path to climate neutrality by 2050 has been an issue of intense discussion. The fundamental question is how much the EU will rely on a market-based approach that combines flexibility with cost-effective emission reductions. Core challenges for the upcoming review relate to continued use of free allowances either to ensure effective protection against carbon leakage or as investment support for investments in clean technologies. In addition, issues have been raised concerning the reduced liquidity of allowances on the road to climate neutrality and their impact on the development of the EU ETS price.

This session as part of EUI Climate Week aims to address the question of how the EU can ensure liquidity in a tightening ETS, and what might be the future role of free allocation and revenue use for industrial decarbonisation. The session will also seek to assess the potential integration of new credit types such as carbon removals or international units into the system.

Chair: Jos Delbeke, European University Institute

Setting the scene: Peter Liese, MEP

Panelists:

• Kavita Ahluwahlia, Uniper
• Robert Jeszke, KOBiZE
• Bea Yordi, European Commission

Conclusion: Jos Delbeke, European University Institute

More information and the full programme of the EUI Climate Week 2026 can be found here.