European Carbon Prices Hit EUR 80 per Ton in June: EU ETS Reform and UK Market Merger in Focus

European carbon prices under the EU ETS rose to EUR 80 per ton in June 2026, driven by progress in US-Iran nuclear talks, expectations of lower energy prices, and the announcement of a UK-EU summit on July 22 that may merge the UK ETS with the EU ETS. The market also reacted to the European Commission's plan to present additional benchmarks for industrial sectors and review carbon market rules in July. Major steel producers including ArcelorMittal, Thyssenkrupp Steel, and voestalpine have called for pragmatic ETS reforms, warning that current rules could raise steel production costs by 50% by the early 2030s. They argue that imported steel avoids equivalent carbon costs while EU exports get no compensation. European chemical companies are also urging a halt to rising carbon costs until viable decarbonization conditions exist. The EU plans to provide additional free CO2 allowances to help industry compete internationally, though critics note this could allow higher emissions. The article highlights the tension between carbon pricing goals and industrial competitiveness, with key decisions expected in July.