European Union member states are expected to call on the European Commission to propose reforms to the bloc's carbon market by July 2026, according to draft conclusions prepared for the upcoming EU leaders' summit seen by Reuters.
At a European Council meeting scheduled for March 19, governments will ask for 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 present proposals aimed at stabilizing the carbon market while maintaining the system's central role in supporting the EU's energy transition. The EU ETS works by setting a cap on greenhouse gas emissions and allowing companies to buy and sell emissions allowances within that cap.
Despite its central role in EU climate policy, the carbon market has faced growing political pressure from some member states concerned about its impact on energy prices. Countries including Slovakia and the Czech Republic argue that rising carbon prices are driving up energy costs and are calling for measures ranging from market reforms to potential system suspensions.
The Commission is expected to present a review in 2026
The European Commission previously indicated that it plans to submit proposals for the revision of the ETS in the third quarter of 2026,
