Episode 14: The EU ETS Review, with Mette Quinn

In this episode of ICAP’s Carbon Market Conversations, host Trevor Laroche-Theune sits down with Mette Quinn (Deputy Director for Carbon Markets and Clean Mobility at the European Commission, DG Climate Action) to unpack the European Commission’s review of the EU ETS proposed in July 2026. This timely conversation outlines the key design elements that have been proposed and the policy logic behind each of them. This ranges from adjustments to the cap trajectory and market stability reserve to proposed changes to balance the objectives of decarbonization incentivization and carbon leakage protection. Mette also sheds light on potential extensions to the ETS scope, both in terms of sector expansion and the developing role of permanent carbon removals and international carbon credits. A more detailed breakdown of the individual aspects of the conversation is provided below.Breakdown of topics covered:0:55 – Introduction to today’s topic and our guest3:00 – High-level objectives of this EU ETS Review, and timing rationale5:00 – Key developments that influenced the EU Commission approach to this review8:15 – ETS cap trajectory 10:00 – Market Stability Reserve 14:00 – Free allocation, EU CBAM, Innovation Fund, and the Industrial Decarbonization Bank17:40 – Carbon removals22:15 – International carbon credits25:00 – Expansion to municipal waste incineration coverage28:45 – Extended aviation coverage30:00 – Most challenging elements of the ETS Review to design31:45 – Next steps for the revision33:30 – The guiding message behind this EU ETS Review34:30 – Closing remarks