The European Emissions Trading System (EU ETS) is facing challenges due to low carbon prices, which may hinder investment in clean technologies. The current system needs reform to stabilize prices and encourage market participation. A proposed solution is to set price boundaries within the EU ETS to ensure a reliable price signal. Additionally, setting a price for greenhouse gas emissions not covered by the system and implementing policies to address market failures and carbon leakage are recommended. Expanding the coalition of countries involved in carbon pricing is also crucial for the system's success.