EU to hold intensive September meetings on ETS reform

The European Union is scheduled to hold eight intensive meetings throughout September to negotiate the reform of the Emissions Trading System (ETS). Under the Irish presidency, these sessions will address critical components of the European Commission's proposal, directly impacting industrial costs and energy prices across member states.

A primary focus for Poland is the determination of indicators used to calculate free CO2 emission allowances for energy-intensive industries, such as steel, cement, and chemical plants. While Poland has secured guarantees for flexible indicator adjustments and the retroactive application of milder regulations, officials aim to ensure that Brussels does not reverse these concessions.

Additionally, negotiators will debate the management of the Market Stability Reserve (MSR). Discussions will center on whether allowances currently held in the reserve should continue to be withdrawn from the market or remain available to prevent sudden price spikes in the event of future shortages. The European Commission has expressed support for moving away from automatic cancellations to mitigate price volatility.