EU leaders open door to weakening carbon market after Italy pressure

European Union leaders agreed Thursday to review the bloc's emissions trading system, its cornerstone climate policy, following pressure from Italy, the Czech Republic, and Poland, who argue the system harms industrial competitiveness. The debate over the carbon market, known as ETS, dominated the Brussels summit, delaying other energy discussions. Italy and central European states seek to soften the system to lower costs for families and businesses, while Nordic countries and Spain warn that weakening it would slow investment in clean energy. The leaders requested the European Commission update its assessment of the ETS2, a planned carbon price on heating and transport fuels, and review its design. This marks the first time leaders have opened the door to diluting the system, though a proposed delay until 2030 was dropped from the final text.