ANALYSIS: EU Investment Booster likely to draw bulk of carbon allowances for sale from New Entrants Reserve

The European Commission will likely have to draw most of the 400 million EU carbon allowances earmarked for its industrial decarbonisation Investment Booster from the New Entrants Reserve (NER) in the EU ETS, as its own modelling indicates that the carbon market's free allocation buffer will be largely exhausted by the end of the decade.