IETA Releases Vision Paper for the Post-2030 EU ETS

As the European Commission prepares to review the EU Emissions Trading System (EU ETS) for the post-2030 period, IETA has published a new vision paper outlining how Europe's flagship climate policy can remain effective while adapting to evolving economic and policy realities.

For more than 20 years, the EU ETS has delivered substantial emissions reductions through a market-based approach built on environmental integrity, transparency and predictable, rules-based governance. Looking ahead, the system will operate under new conditions, including a shrinking emissions cap, increasing competitiveness pressures and the need for closer alignment with complementary climate policies.

IETA's Vision for the Post-2030 EU ETS sets out recommendations to preserve the strengths of the EU ETS while enhancing its efficiency and supporting Europe's transition to climate neutrality. The paper calls for an integrated review of the system, recognising that key design elements, including the cap, the Market Stability Reserve, free allocation, carbon removals, international credits, market linking, ETS revenues and competitiveness safeguards, must be considered together.

The paper also explores several priority topics, including regulatory predictability, expanding the scope of the EU ETS, linking compliance carbon markets, and the future role of international carbon credits.

As the EU works towards its 2040 climate target and climate neutrality by 2050, IETA highlights the importance of maintaining a predictable, high-integrity carbon market that supports investment, competitiveness and cost-effective decarbonisation.

Download the paper here.