Andrei Marcu of the ERCST argues that the EU Emissions Trading System must evolve beyond simply managing carbon prices. As allowance scarcity increases across all sectors, the current Market Stability Reserve may be too primitive to handle the complexities of industrial decarbonization. The discussion highlights the need for a flexible governance framework that considers the actual cost of transitioning industry. This includes factoring in the availability of renewables, grid infrastructure, and the financial feasibility of deploying new low carbon technologies.
