The document discusses reform options for the EU Emissions Trading System (EU ETS). It summarizes that while the EU ETS has kept emissions below caps, it lacks dynamic efficiency to ensure long-term cost-effectiveness due to low and decreasing carbon prices. The proposed Market Stability Reserve is seen as insufficient and uncertain in its impact. Alternatively, Euro-CASE proposes a comprehensive reform package including setting a price collar to stabilize expectations, expanding the ETS to more sectors, additional policy tools to spur innovation, and addressing carbon leakage through international linking of carbon markets. Without reform, fragmented climate policies risk higher costs.