ETS: "The Commission proposal is incompatible with the target of reducing emissions by 90% by 2040" (WWF)

“The European Commission's proposed reform of the EU Emissions Trading System (ETS) is incompatible with the EU's target of reducing emissions by 90% by 2040” compared to 1990 levels, according to the conclusion of a new analysis by the Öko-Institut, commissioned by WWF Germany, released on 2 November 2026.

The analysis puts forward that this proposal “would increase the supply of allowances under the ETS by up to 10% above the projected demand, creating additional space for emissions” from the EU’s industry, power, and aviation sectors.

“A key concern is the Commission's proposal to allow additional emissions beyond the existing emissions cap in exchange for future permanent carbon removals. It remains unclear whether these removals can be delivered at the scale required, as the necessary…