Metals & mining (AO) | Metals & mining

Research evidence excerpt

Metals & mining (AO) | Metals & mining

News comment

Release date: 15 July 2026

Boris Bourdet, CFA

Equity Research Analyst

+33 1 70 81 57 25

Metals & mining bbourdet@keplercheuvreux.com

Europe

EU ETS review points to stronger industrial support

Key points:

According to media reports, the European Commission is preparing a review of the EU Emissions Trading System (ETS) aimed at

strengthening industrial competitiveness while preserving the carbon pricing framework and the EU's 2040 climate targets.

The draft review is reportedly set to channel a larger share of ETS auction revenues towards decarbonisation investments in

energy-intensive industries, while also considering greater flexibility in the phase-out of free allowances for sectors covered by

the CBAM.

If confirmed, these measures would be supportive for European steelmakers, improving the investment case for low-carbon

projects without weakening the structural protection provided by the combination of ETS and CBAM.

Towards a more industry-friendly ETS

According to several media reports, including the Financial Times and Agence Europe, the European Commission is preparing a

review of the EU Emissions Trading System (ETS) that would place greater emphasis on industrial competitiveness while

preserving the integrity of the carbon market and the EU's climate ambitions.

Rather than lowering carbon prices or weakening the ETS, the reported measures would focus on improving how the system

supports industrial investment, particularly in energy-intensive sectors such as steel, aluminium, cement and chemicals. The

Commission's official communication has not yet been published.

A larger share of ETS revenues to support industry