Italian Prime Minister calls for suspension of ETS for electricity

Giorgia Meloni has called for a suspension of the EU ETS, accusing the carbon market of artificially inflating electricity prices. The Prime Minister wants to neutralise the impact of CO2 prices on electricity prices until the European emissions trading system is revised in the third quarter of 2026. In mid-February, the Italian government adopted a decree providing for the reimbursement of gas-fired power plants for the cost of CO2 allowances purchased under the EU ETS. Italy also wants free allowances to be allocated to electricity-intensive industries (steel, paper and chemicals in particular).