EU Leaders Back Investigation into EU ETS Trading, Energy Price Concerns Mount
During the recent summit, EU leaders have given their support to the European Commission (EC) to investigate trading behavior within the EU Emissions Trading System (EU ETS) and potentially take action against potential abuse, with the assistance of the European Securities and Markets Authority (ESMA).
Hungary, Poland, and the Czech Republic have raised concerns about the new Fit for 55 proposals, warning that they could lead to increased energy prices. Poland has called for a "revision or postponement" of the EU's 2030 climate plan and has emphasized the need for special attention to be given to the EU ETS. The Czech Prime Minister, backed by Hungary's Viktor Orbán, reportedly resisted signing off on the summit's energy conclusions due to claims of manipulation within the EU ETS.
Germany has urged caution in distinguishing the recent surge in energy prices from the EU's climate plan, emphasizing the need for a prudent response. Record-high European gas prices have prompted Spain, Italy, and Greece to propose a joint gas procurement system. However, Germany and the Netherlands have resisted overhauling EU regulations, considering the price surge to be a short-term crisis.
The European Commission anticipates that prices will stabilize at a lower level by April. Recently, the EU published a "toolbox" outlining national measures that governments can adopt in response to rising energy prices, while Brussels considers longer-term options. An emergency meeting of energy ministers is scheduled for 26 October to address the issue.
