Evaluation Support for EU ETS and MSR and 2026 Review

The objective of this study is to support DG CLIMA in the evaluation of the EU ETS and MSR, with a focus on certain elements that are due to be reviewed by 2026. The specific objetives are:

• Support the Commission in carrying out an evaluation to assess the effectiveness, efficiency, relevance, coherence, EU added value, of the selected aspects of the ETS Directive and of the MSR Decision, as well as identifying areas of further action in this policy area in view of current and future climate action objectives; 
• Support the Commission in carrying out an Impact assessment. The purpose of this work is to review selected aspects of the ETS Directive and MSR Decision by setting out policy options and assessing their impacts in an evidence-based way; 
• Design, carry out and analyse the results of an open public consultation on the evaluation and impact assessment. 

adelphi leads three thematic areas in this effort: the MSR, potential use of removals in the EU ETS, and linking of ETSs. We evaluate the performance of the MSR relative to its objectives and identify emerging issues regarding all three thematic areas that the EU should consider addressing through policy measures and options. We assess the impact of these measures and options to ensure the EU ETS continues to advance decarbonization in Europe towards climate neutrality by 2050.