The European People's Party (EPP) will hold the pen on the next phase of EU carbon market reform under a reported agreement to keep far-right groups from controlling the file. The deal blocks the far-right Patriots for Europe group from taking the lead on post-2030 ETS design, handing the center-right EPP the rapporteur role instead. This keeps the reform process in the hands of a mainstream party that has historically supported the ETS as a core climate tool. For carbon market watchers, the political maneuver matters because it sets the tone for the next round of ETS tightening. The EPP's stance on allowance supply, free allocation phase-out, and carbon border adjustment will shape the market from 2031 onward. The deal also signals that mainstream parties see the ETS as too important to leave to euroskeptic or far-right lawmakers who might weaken the system.
