EU leaders ask Commission to reassess ETS2 impact on prices

European Union leaders have asked the European Commission to update its assessment of all impacts of the ETS2 carbon trading system, particularly its structure and safeguard measures, according to summit conclusions adopted after lengthy negotiations among the 27 member states. The text stresses the urgent need to ensure a well-functioning, transparent, and predictable carbon market, reduce price volatility, and mitigate the impact on electricity prices while preserving the essential role of the Emissions Trading System. The reference to ETS2 was added at the request of Italy and the Visegrad group countries, though no specific call for delaying the carbon market for transport and buildings was included. In the energy chapter, the summit reaffirms the need to protect against carbon leakage and support European industrial competitiveness, while maintaining a market-based price signal for emissions that stimulates investment and innovation in the climate and energy transition.