EU splits over ETS
EU leaders are openly divided over the Emissions Trading System as war-driven energy price shocks force 'temporary and tailored' measures to shield consumers and businesses (eunews.it) (euronews.com). Von der Leyen responded by pledging to revise carbon pricing and launch a €30 billion Cleantech Fund to accelerate domestic clean energy — but fractures (including Hungary’s veto on a Ukraine loan and Italy’s failed ETS push) show political unity is fragile (esgtoday.com) (bullsource.com). The Commission also opened a consultation on the post‑2030 renewable framework even as industry groups urge ETS reforms to protect competitiveness (solarquarter.com) (webwire.com).
The Commission on March 20 opened a 4‑week call for evidence and a 12‑week public consultation to shape the EU’s post‑2030 renewable framework. (energy.ec.europa.eu) (energy.ec.europa.eu) Commission documents say the exercise will feed into a legislative roadmap for renewables, with a post‑2030 package expected to be developed later in 2026 and draft proposals signalled for Q3–Q4. (energyheadlines.com) (energyheadlines.com) President Ursula von der Leyen told leaders the Commission will move “in days” to boost the carbon market reserve and consider short‑term permit supply measures to calm electricity bills. (politico.eu) (politico.eu) Von der Leyen also announced plans for a €30 billion decarbonisation/cleantech fund to be financed from ETS mechanisms to accelerate domestic clean‑energy investment. (esgtoday.com) (esgtoday.com) Italy’s Confindustria urged a temporary suspension of the ETS, saying Italian industry “cannot hold out another six months,” while BusinessEurope pushed to retain the ETS as central to EU policy. (eunews.it) (eunews.it) Market reaction has been immediate: EU carbon allowances dropped more than 5% after Commission comments about increasing permit availability. (reuters.com) (msn.com) Political fault‑lines deepened at the summit as Hungary blocked a separate €90 billion EU loan for Ukraine, prompting open rebukes of Prime Minister Viktor Orbán from several capitals. (msn.com) (msn.com) Rome’s bid to pause the ETS has limited backing: a non‑paper from eight member states opposed suspension as a dangerous precedent, even as Prime Minister Giorgia Meloni led a separate letter with nine leaders calling for an ETS review and extended free quotas beyond 2034. (ilsole24ore.com) (en.ilsole24ore.com)
