EU leaders to seek carbon market reform proposals by July
EU leaders will ask for a review of the emissions trading system by July to lower price volatility. The reform aims to protect the bloc's energy transition.
European Union governments are set to demand that the European Commission propose reforms to the bloc's carbon market by July 2026, according to draft conclusions for an upcoming summit. The move aims to address volatility in carbon pricing and its subsequent impact on electricity costs across member states. During the summit on March 19, leaders will formally request a review of the emissions trading system (ETS). The draft document specifies that the reform should maintain the central role of the ETS in the energy transition while seeking to stabilize prices. This directive comes despite calls from some governments, including Slovakia and the Czech Republic, to suspend or weaken the system to lower energy bills. While the European Commission has indicated it plans to propose ETS reforms in the third quarter of the year, it has not yet provided a specific date for the announcement.
