Support for the evaluation of the EU emissions trading system (EU ETS) and the Market Stability Reserve (MSR) and for the 2026 review of the EU ETS and MSR

The general objective of this contract is to support DG CLIMA in the evaluation of the EU ETS and the MSR, and in the review of certain elements due in 2026, by providing timely and high-quality input for supporting the Commission in drafting its own evaluation report and an impact assessment, in an almost parallel manner, in line with the Commission's Better Regulation Guidelines. The three specific objectives of this support contract are: (1) Support the Commission in drafting an “evaluation staff working document”, in particular assessing the effectiveness, relevance, efficiency, coherence and 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 change objectives. The selected aspects are: (i) Carbon leakage protection measures for non-CBAM sectors; and (ii) MSR in respect of ETS1.

In addition, the consultant may be asked to carry out ad-hoc tasks related to the assessment of other interconnected elements that are to be included in the evaluation. (2) Support the Commission in drafting an “Impact Assessment staff working document" for revising selected aspects of the ETS Directive and the MSR Decision, by setting out a range of policy options and providing the evidence base for and the impacts of each option on the following topics: (i) MSR; (ii) negative emissions; (iii) accounting and double counting of non-permanent CCU; (iv) municipal waste incineration and other waste management processes; (v) the feasibility of lowering the 20 MW total rated thermal input thresholds; (vi) linkages between the EU ETS and other carbon markets; and (vii) carbon leakage protection measures for non-CBAM sectors. In addition, the consultant may be asked to carry out ad-hoc tasks related to the assessment of other interconnected elements that are to be included in the impact assessment.

(3) Design, carry out and analyse the results of the public consultation on the evaluation and impact assessment of points 1 and 2.