First Read: EMEA Sustainability "ETS review: trajectory changes + carbon..."

Research evidence excerpt

First Read: EMEA Sustainability "ETS review: trajectory changes + carbon..."

Global Research

17 July 2026ab

First Read

EquitiesEMEA Sustainability

ETS review: trajectory changes + carbon Europe Ex. UK

removals & international credits Global Sustainability

Alisa Dudchak

Analyst

alisa.dudchak@ubs.com

+44-20-7567 0844

The EU Commission has published a proposed ETS review today. In our view, the

proposal reflects the EU's efforts to encourage economic competitiveness in a Charles Fruitiere

changing geopolitical landscape where industrial strength, energy security, Analyst

resilience and flexibility are important factors alongside climate goals. It is further charles.fruitiere@ubs.com

+44-20-7567 4123

supported by a simultaneous publication of the Electrification Action Plan which

highlights the risks and high costs of fossil fuel dependency, and the need for Victoria Kalb

investment. The Plan tentatively submits 46% electrification by 2040 target (subject Analyst

to impact assessment anticipated by Q4 2026). vicki.kalb@ubs.com

+65-6495 4584

Julian Radlinger, CFAThe ETS review is broadly in line with previously announced changes. Below we

summarize key elements of the proposal (+ see UBS sector analysts' views on potential

julian.radlinger@ubs.com

implications on P2). Join our call with UBS sector analysts for more detail (register here). +44-20-7901 6558

Andrew Jones

Investments: Industrial Decarbonisation Bank (€100 bln) for industrial decarbonisation: Analyst

andrew-i.jones@ubs.com

€30bn from Investment Booster over 2028-2031 with 400 mt allowances reserved

+44-20-7901 6545

to provide fixed carbon premia using a ‘first in, first served’ system to fast-

track investments on the basis of speed (with some share kept for lower- Wanda Serwinowska, CFA

income Member States).