Carbon removals could lead to EU ETS oversupply before 2040

by Sara Stefanini, in Carbon Pulse

Including carbon removals in the EU Emissions Trading System before 2040 risks exacerbating oversupply that has plagued the market

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What will the future of the EU Emissions Trading System (ETS) look like as the emissions cap heads towards zero? Is integrating carbon dioxide removals (CDRs) into the ETS a solution to help the EU achieve its climate goals? Or would they compromise the integrity and functioning of the system? These questions are at the forefront of the Commission’s mind as they review different options for the future of the ETS ahead of the 2026 revision.

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