This report analyses the resilience of the European Emissions Trading System (EU ETS) and shows how global crises such as the COVID-19 pandemic or the war in Ukraine can affect its operation. In view of rising energy prices and economic uncertainties, it becomes clear that the EU ETS needs to improve its legal resilience to crisis situations. The report highlights necessary reforms to make emissions trading more resilient and effective in the future.

The Covid-19 pandemic and, most recently, the war that has erupted in Ukraine have shown that such crises can have a major impact on European emissions trading. This raises the central question: Can and must the European emissions trading system become more crisis-proof? In the present project, concrete crisis scenarios are developed that could put a strain on the European emissions trading system (EU ETS). This is followed by an analysis of the possibilities that the existing laws and regulations offer for reacting to such crises. The further aim of the project is to show ways to improve the handling of crises within the trading system.