Leveraging Digital Infrastructure for a Next-Generation Carbon Market

The document is a policy input from the DigitalTrade4.EU consortium to the European Commission, offering recommendations for the 2026 review of the EU Emissions Trading System (ETS) and the Market Stability Reserve (MSR). It advocates for deeper integration of the ETS with emerging digital infrastructure—such as Digital Product Passports (DPPs), the Finance Data Access (FiDA) framework, and international standards like UNCITRAL MLETR and eIDAS 2.0—to enhance efficiency, transparency, inclusiveness (especially for SMEs), and global interoperability. The goal is to create a next-generation, digitally enabled carbon market aligned with the EU Green Deal and international climate commitments.