The EU’s heads of government are set to invite the bloc’s executive to improve monitoring of the EU carbon market, where a rally has sparked concerns about speculation and the effect on inflation amid an energy crisis.
“The European Council invites the commission to deepen the examination of the functioning of the electricity markets, as well as the monitoring of EU ETS trading, and to take any necessary initiatives,” according to the statement, which was to be adopted at a summit in Brussels on Thursday. Steel producers, also covered by the carbon market, warned EU leaders on Thursday that “continued prohibitive energy prices coupled with skyrocketing carbon prices” threaten to undermine its decarbonisation plans. Eurofer, the industry’s association, also opposes EU plans to phase out free permits when implementing a carbon import levy, an element of the climate overhaul.
At the summit, EU leaders will discuss reports on trading behaviours in the Emissions Trading System and on the design of the bloc’s power market. While a group of countries led by Poland and Spain has blamed speculators for the unprecedented price spike and called to restrict market access for some investors, the EU’s market watchdog dismissed concerns over abuse.