European Building Materials "Feedback from European carbon expert call"...

Research evidence excerpt

European Building Materials "Feedback from European carbon expert call"...

Global Research

1 July 2026ab

European Building Materials Equities

Europe including UKFeedback from European carbon expert call

Building Materials

Julian Radlinger, CFA

We discussed the European CO2 regulatory outlook with Transition Metrics Analyst

We hosted an expert call with Philipp Ruf, co-founder of carbon analytics company julian.radlinger@ubs.com

Transition Metrics, to discuss the outlook for the ETS and European CO2 regulation. In +44-20-7901 6558

the call, Philipp addressed regulatory dynamics for the cement, chemicals, steel, utilities Wanda Serwinowska, CFA

and aviation industries (reach out to our colleagues to discuss in more detail), but here Analyst

we'll focus on the takeaways for cement. The slides used in the call are available here. wanda.serwinowska@ubs.com

+44-20-7568 3980

Regulatory timeline: Kick-off on 15 July with 12-18 months likely debate Andrew Jones

The key upcoming regulatory events are: 15 July 2026: The EU Commission will publish Analyst

its official legislative ETS reform proposals. From Q3 26 into H1 27, the European andrew-i.jones@ubs.com

+44-20-7901 6545

Parliament and Council will discuss and then vote on the proposals. Philipp thinks an

agreement could be reached by Q3/Q4 27 with implementation of reform elements Priyanka Patel

from 1 Jan 2028. 12-18 months is a typical timeline for this sort of legislation. The new Analyst

(2026-30) industry benchmarks (used for allowance allocation) are also likely to be priyanka.patel@ubs.com

+44-20-7568 0016

officially presented on 15 July but could be agreed upon via a faster, separate timeline.

Jarrod Castle, CFA

Key reforms likely to be proposed; CO2 net price effect limited short term Analyst

jarrod.castle@ubs.com