The economic impact of the COVID-19 pandemic had the potential to shock carbon markets around the world. However, markets demonstrated remarkable resilience, first reacting rationally to lower demand through price decreases, and then returning to near-normal functioning. Compared to after the global financial crisis, ETSs have weathered the shock without major effects. Market resilience can be attributed to two factors. First, market stability measures implemented in the last years have provided rule-based and predictable tools to support market function and adjust to structural imbalances. Secondly, ETS reforms have been embedded in overarching policy frameworks, more ambitious 2030 targets, and long-term net-zero commitments, fostering policy certainty and longevity.