European Union member states are preparing to call on the European Commission to propose reforms to the EU Emissions Trading System (ETS) aimed at reducing carbon price volatility and limiting its impact on electricity prices.
According to draft conclusions prepared for the European Council summit scheduled for March 19, EU governments want the Commission to present reform proposals by July 2026.
The EU ETS is the bloc’s primary climate policy tool and works by setting a cap on greenhouse gas emissions while allowing companies to trade emission allowances within that limit.
However, the system has recently faced growing political pressure as some governments argue that rising carbon prices are contributing to higher electricity costs for industries and households.
Countries including Slovakia and the Czech Republic have been among those calling for changes to the carbon market, with proposals ranging from market adjustments to a potential suspension of the system.
Despite these concerns, the draft conclusions emphasize that the ETS should remain a central mechanism supporting the EU’s energy transition, while reforms should aim to stabilize carbon prices and balance climate goals with industrial competitiveness.
The European Commission is expected to present a formal review of the ETS in the third quarter of 2026, although the exact timeline has not yet been finalized.
The upcoming discussions highlight the EU’s challenge of maintaining ambitious climate policies while addressing concerns over energy affordability and industrial competitiveness across the bloc.
VietnamSteel by Hoa Sen Group
