CARBON MARKETS : Feedback from today’s EU ETS roundtable ahead of July review

Research evidence excerpt

CARBON MARKETS : Feedback from today’s EU ETS roundtable ahead of July review

EQUITIES

CARBON MARKETS

FLASH NOTE

Feedback from today’s EU ETS roundtable ahead of July review

12 MAY 2026 Macro Research Report Production time: 16:46* (London time)

Research Analyst & Publishing Entities

Martin Brough BNP Paribas London Branch (+44) 203 430 8461 martin.brough@uk.bnpparibas.com

European Commission officials set out key components of the upcoming carbon market review

The European Commission has today hosted a High-level Roundtable on the EU ETS Review. This involved

presentations and discussions from key European Commission staff as well as other stakeholders ahead of the

publication of proposed ETS reforms which is currently due on 15 July 2026 (draft Commission publication agenda).

Kurt Vandenberghe, Director-General at DG Climate Action (DG CLIMA) opened the Roundtable, setting out key

priorities and describing the review proposal as being in its ‘final stages’. This was followed by a further short introduction

by Beatriz Yordi, Director at Directorate for Carbon Markets and Clean Mobility, DG CLIMA. She highlighted that

the targeted Q1 2027 date for agreement on the proposal is very challenging, with planned implementation in 2028.

The substantive presentations by the Commission comprised:

– Driving competitiveness and cost-effective decarbonisation – Mette Quinn Koefoed, Head of Unit for ETS

Policy coordination and international carbon markets (B1), DG CLIMA. This covered the potential change

to the Linear Reduction Factor (the overall cap), role of international credits, carbon market removals and Market

Stability Reserve reforms.

– Ensuring effective carbon leakage protection for industry – Heiko Kunst, Head of Unit for Implementation,