The EU ETS’ market stability reserve: a marginal long-term structural reform

One year ago, Mario Draghi warned that Europe was becalmed in treacherous waters. Fading competitiveness, trade disputes to east and west, and a growing political mutiny against the green transition make the way forward hard to navigate. This year, however, the EU has begun to find its bearings – guided by the Competitiveness Compass, with decarbonisation as the north star of the Clean Industrial Deal.

Europe is levelling up its industrial policy. From the Clean Industrial Deal to proposals for a more flexible EU budget, the Commission signals new ambition to build scale in strategic cleantech sectors and strengthen Europe’s decarbonising industrial base. Yet this firepower risks losing impact if spread too thinly. Limited resources demand sharper focus. As the Draghi Report made clear, Europe must act strategically: understand its industrial strengths and vulnerabilities, prioritise the sectors that matter most, and align funds, regulation, and institutional capacity accordingly. 

This year marks an important milestone for I4CE: we are celebrating a decade of commitment to the climate economics. We would like to thank our partners who agree to say a few words at the occasion of this anniversary.