politics
EU moves to curb carbon market spikes as energy crisis deepens
Brussels has proposed temporary reform of the carbon market to limit permit price spikes while officials warn that the Iran war and a major LNG plant outage risk prolonged energy shortages and wider economic strain.
Apr 1st 2026 · Germany
Insights
- European Commission proposed emergency changes to the EU carbon market to prevent a surge in permit prices.
- EU Energy Commissioner urged Europeans to work from home and drive less to cut demand amid an oil shock linked to the Iran war.
- German leader Friedrich Merz warned the economic fallout from the Iran war could rival the Covid pandemic or Russia’s invasion of Ukraine.
- Damage to the world’s largest LNG plant may cut gas supplies to Italy and Belgium and could take up to five years to repair, according to QatarEnergy.
- Soaring fuel and gas costs are increasing pressure on Ukraine by complicating logistics and adding to its financial needs as it awaits EU support.
Sources
- Europe needs fossil fuel limits now euobserver.com
- Solar saved Europe €3bn in fossil fuel imports in March: Which country is leading the way? www.euronews.com
- EU proposes emergency change to carbon market to prevent soaring prices www.politico.eu
- Las restricciones a la compra de gasolina llegan a Europa ante la falta de suministro www.abc.es
- EU Tweaks Carbon Reserve Rules Amid Energy Crunch www.bloomberg.com
- In Europe, lobbyists are using soaring fuel prices to make the case for more dirty energy www.theguardian.com
- EU allows pollution permits to pile up in bid to placate industry euobserver.com
- UK hears echoes of historic fuel crises www.ft.com