Frans Timmermans, the EU’s climate chief, has stated that tampering with the emissions trading scheme would have only a minor effect on the ongoing energy price surge. He argues that CO2 prices are responsible for a small fraction of the energy price increases and does not expect this issue to derail discussions on the Fit for 55 proposals. Timmermans attributes the high energy prices to increased post-COVID demand and delays in gas pipeline maintenance, rather than solely relying on CO2 prices.
An EU leaders’ summit is scheduled for 21-22 October, where the details of the “toolbox” to address rising energy costs within the EU will be disclosed. This toolbox may include social schemes aimed at supporting low-income households and temporary tax breaks. Discussions will also involve the establishment of an EU strategic gas reserve and the decoupling of electricity prices from gas prices, as mentioned by EU Commissioner Ursula von der Leyen.
