Parliament’s draft report shows entire ETS2 policy toolbox remains open

The draft report of the European Parliament’s rapporteur endorses the Commission’s proposed technical changes to the ETS2 Market Stability Reserve and introduces only one minor operational adjustment. Instead, the draft report focuses primarily on social‑acceptability concerns, proposing a wide range of potential safeguard measures that reveal just how open the ETS2 policy toolbox remains. These additions reflect the broader political backlash the system is facing, which led to the decision to delay its launch to 2028. The ongoing process in the European Parliament underscores that the political debate over ETS2’s final shape is far from over.