Italy and France are pushing the EU to accelerate ETS and CBAM reforms to protect industry
Italy and France have called on the European Commission to accelerate reforms to the EU's carbon cap adjustment mechanism and its emissions trading system, warning that current proposals are unable to protect the bloc's energy-intensive industries from unfair competition and global overcapacity.
Italian Minister of Entrepreneurship Adolfo Urso and French Minister of Industry Sebastien Martin signed a joint declaration at the third Franco-Italian Industrial Cooperation Forum vRim on March 3, outlining a common position on European industrial policy.
Regarding the EU's emissions trading system, Italy and France called for a comprehensive review to improve the stability and predictability of ETS prices, arguing that it is important to maintain competitiveness in energy-intensive industries.
The ministers said that CBAM requires more comprehensive changes than those proposed by the European Commission in December, with particular concern about the planned implementation in 2028.dates and gaps in industry coverage.
"We need a more cohesive and more competitive Europe. There is no more time to waste: we must act immediately to save European industry," Urso said at a forum held within the framework of the Quirinal Treaty between the two countries.
The joint statement also says that any CBAM reform must be completed quickly along with the ETS changes.
The European Commission plans to conduct a review of its compliance market in the third quarter of this year, including issues such as free distribution, Market Stability Reserve, and industry expansion.
According to the current rules, free distribution should be completely eliminated by 2034 for sectors covered by the EU Carbon Limit Control Mechanism.
The ministers welcomed the Commission's proposal on December 17 to simplify CBAM, but said that the extended processing sectors, covering 180 products, required careful analysis to ensure the protection of all EU strategic supply chains.
They expressed concern that the planned entry into force of the measure on January 1, 2028 is happening too late to cope with the current competitive pressures.
Lower carbon prices
European carbon prices have dropped by more than 20 euros per tonne since mid-January, as persistent calls by EU politicians for EU ETS reforms have led to a drop in market confidence.
Platts, part of S&P Global Energy, estimated the EUA in December 2026 at 73.64 euros/MtCO2-eq. March, 3rd.
Officials from several member countries, including Italy, Germany, France, and the Czech Republic