EU governments will insist on accelerating carbon market reform

EU governments intend to ask the European Commission to propose reforms to the bloc’s carbon market this summer. This was reported by Reuters, citing draft conclusions from the March summit of EU leaders.

The appeal to Brussels calls for a review of the Emissions Trading System (ETS) by July 2026 at the latest to reduce carbon price volatility and mitigate its impact on electricity costs.

The draft conclusions state that the reform should preserve the central role of the ETS in the bloc’s energy transition despite calls from some governments, including Slovakia and the Czech Republic, to suspend the system or weaken requirements to reduce energy bills.

The European Commission plans to propose ETS reform in the third quarter of 2026 without specifying a specific date.

In addition, EUobserver notes that EU leaders are also expected to call for concrete action to reduce wholesale and retail electricity prices in the short term.

In February this year, 11 EU member states called for a major overhaul of the ETS system to stabilize prices, protect energy-intensive industries, and stimulate investment in clean technologies. The joint statement was made by the ministers of industry of Italy, Austria, Croatia, the Czech Republic, France, Germany, Luxembourg, Poland, Portugal, Slovakia, and Spain.