Institutional investors are calling for a stable and predictable carbon price signal as the EU reviews its Emissions Trading System (ETS). The goal is to ensure that long term capital allocation remains focused on industrial decarbonization and clean energy transitions without the risk of policy volatility. While the ETS has successfully reduced emissions in the power sector, there is a push to better utilize auction revenues for industrial innovation. The discussion also highlights the role of the Carbon Border Adjustment Mechanism (CBAM) in maintaining competitiveness and encouraging global carbon pricing adoption.
