EU carbon prices plunge as German Chancellor suggests ETS reforms
EU carbon prices fell today as German Chancellor Friedrich Merz suggested revising emissions rules. Analysts cite rising political risks before a summer review.
The European benchmark carbon contract (December) fell sharply on February 12, 2026, after Friedrich Merz, the Chancellor of Germany 
DE, suggested that the European Union should be open to revising or postponing the planned tightening of the EU emissions trading system (EU ETS). These comments increased perceived political-interference risk and directly pressured carbon pricing ahead of a scheduled ETS review. The development has introduced a new layer of uncertainty into the market as the bloc prepares for a critical policy assessment.
DE, suggested that the European Union should be open to revising or postponing the planned tightening of the EU emissions trading system (EU ETS). These comments increased perceived political-interference risk and directly pressured carbon pricing ahead of a scheduled ETS review. The development has introduced a new layer of uncertainty into the market as the bloc prepares for a critical policy assessment.
