EU ETS mechanics article on Carbon Insights Learn.

EU ETS mechanics

EU ETS Phase 4 explained

Phase 4 set the frame. Live reform still rewrites the years ahead.

Updated 2026-08-05 · Model output for professionals · Not investment advice

Phase 4 in one screen

Tighter linear reduction, a stronger MSR role, and evolving sector coverage (including aviation and maritime steps). It is the baseline rulebook many Status Quo paths start from.

Live reform on top

Commission, Parliament, and Council texts can still change LRF, MSR, free allocation, and CBAM timing. Scenario Desk keeps Status Quo vs Live Reform explicit.

FAQ

Is Phase 4 over?
Phase 4 is the current framework period, but parameters inside it keep changing through legislation. Desks trade the live path, not a frozen textbook.

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