EU leaders to demand carbon market reform by July, draft shows

EU Leaders Call for Carbon Market Reform to Stabilize Prices by July 2026

EU Summit to Address Carbon Market Volatility and Energy Prices

Draft Conclusions Outline Reform Timeline

BRUSSELS, March 10 (Reuters) - European Union governments are set to ask the European Commission to propose reforms to the bloc's carbon market by July, draft conclusions for a summit of EU leaders next week showed. 

Key Points from the Draft Conclusions

At their summit on 19 March, EU leaders will ask Brussels "to present a review of the emissions trading system (ETS) at the latest by July 2026, to both reduce the volatility of the carbon price and mitigate its impact on electricity prices," according to the draft conclusions, seen by Reuters.

Maintaining the ETS in the Energy Transition

The draft conclusions said the reform should preserve the central role of the ETS in the EU's energy transition. That's despite calls from some governments, including Slovakia and the Czech Republic, for the EU to suspend or weaken the system, as a way to cut energy bills.

Next Steps for the European Commission

The European Commission has said it plans to propose the ETS reform in the third quarter of the year, but has not given a specific date.

(Reporting by Kate Abnett, Jan Strupczewski, Editing by Charlotte Van Campenhout)