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Confidence in EU ETS to Support Decarbonization Falls

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The confidence in the European carbon market’s ability to drive decarbonization in the region has fallen by around 6% year on year, according to the latest annual State of the EU ETS report, co-authored by BNEF.

  • While stakeholders continue to see the EU ETS as positive to drive decarbonization, concerns persist over the market’s future role, which is likely to become clearer in 2026, once the outcome of seven substantial reviews is completed.
  • In this year’s survey, 84% of stakeholders see the EU ETS effective for decarbonization, down from 90% last year (see chart).


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The confidence in the European carbon market’s ability to drive decarbonization in the region has fallen by around 6% year on year, according to the latest annual State of the EU ETS report, co-authored by BNEF.

  • While stakeholders continue to see the EU ETS as positive to drive decarbonization, concerns persist over the market’s future role, which is likely to become clearer in 2026, once the outcome of seven substantial reviews is completed.
  • In this year’s survey, 84% of stakeholders see the EU ETS effective for decarbonization, down from 90% last year (see chart).