The “Fit for 55” revision of Europe’s emission trading system is now formally adopted and will shortly pass into law, alongside other key climate files. The effects will be significant, both in terms of market balance and scope expansion. In 2024 we will see the first one-off reduction of issued volume, a rapid decrease of the emission cap, and the start of a gradual phase-in of maritime emissions. Today’s adoption was expected and had little impact on front-year future prices.