European Union member states are expected to ask the European Commission to propose reforms to the bloc's carbon market by July 2026, according to draft conclusions prepared for the upcoming summit of EU leaders, which was reviewed by Reuters.
At the European Council meeting scheduled for March 19, governments will request a review of the EU's Emissions trading System (ETS) aimed at reducing carbon price volatility and limiting its impact on electricity prices.
Focus on stabilizing carbon prices
The draft text states that the European Commission should submit proposals aimed at stabilizing the carbon market while maintaining the central role of the system in supporting the EU's transition to energy. The EU's ETS operates by setting a cap on greenhouse gas emissions and allows companies to buy and sell emission quotas within that limit.
Despite its central role in EU climate policy, the carbon market is facing increasing political pressure from some member states concerned about its impact on energy prices. Countries including Slovakia and the Czech Republic have argued that rising carbon prices are contributing to higher electricity costs and have called for measures ranging from market reforms to potential system shutdowns.
The Commission is expected to submit a review in 2026.
Earlier, the European Commission indicated that it plans to submit proposals for the revision of the ETS in the third quarter of 2026, although the exact timetable has not yet been approved.
The planned review is expected to focus on balancing the EU's climate goals with concerns about industrial competitiveness and energy availability across the bloc.
Author: SteelOrbis Editorial Team
Steelorbis.com
