Energy Transition, Carbon, Emissions

March 06, 2026

INFOGRAPHIC: EU's flagship carbon market buckling under political strain

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HIGHLIGHTS

EU Allowances have slid since January

The European Commission is set to review key rules under the bloc's EU Emissions Trading System in the third quarter of 2026.

Amid growing concerns about EU industrial competitiveness, many governments are pushing for reforms to improve price predictability. This shift has seen EU carbon prices drop by around Eur20/mtCO2e from January as bullish expectations begin to deflate.

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