Climate roundtable chief, Andrei Marcu, is calling for a rethink of EU carbon market governance beyond short-term fixes
As the European Commission prepares to review the EU Emissions Trading System (ETS) and its Market Stability Reserve (MSR), debates over the future of Europe’s carbon market are intensifying.
Concerns over price volatility, declining liquidity, industrial competitiveness and the long-term functioning of the system are increasingly moving from technical discussions into the political mainstream.
In an interview with Euractiv, Andrei Marcu, executive director of the European Roundtable on Climate Change and Sustainable Transition (ERCST), argues that the debate can no longer focus solely on managing carbon prices.
Marcu warns that growing allowance scarcity and declining market liquidity could pose significant risks for price stability and long-term investment planning, particularly as all sectors covered by the ETS are now “short” for the first time.
