European leaders spent a full summit day arguing over high energy prices and the future of the EU carbon market. Five countries led by Poland, Hungary, and Italy pushed to delay the ETS2 carbon tax on transport and heating fuels until at least 2030. Spain, the Netherlands, and other northern states rejected that. The final summit text avoided any delay and instead asked the European Commission to update its assessment of ETS2 design and safeguards. The debate also touched on ETS1, the existing system for heavy industry. Leaders want the market stability reserve reformed to reduce carbon price volatility and limit the impact on electricity prices. Belgian Prime Minister Bart De Wever said scrapping ETS would be pointless, but warned that adding ETS2 on top of a 70 percent rise in gas prices this year would push bills much higher. The Commission will now study further short-term measures for vulnerable industries and refineries.
