Polish prime minister Donald Tusk remains "cautious" about the European Commission's proposed €30bn clean energy booster, funded by 400mn EU emissions trading system (ETS) allowances, saying he would not declare success until "envelopes full of money" reach Polish industry. But Poland and other EU member states where the ETS heavily impacts energy costs will fully qualify for the booster mechanism, Tusk said.
Surplus ETS allowances could also be converted into direct funding for energy-intensive economies such as Poland, Tusk said. "In the coming days, the commission will release a certain amount of allowances on the market, which should — and probably will — reduce their prices, hopefully impacting energy prices," Tusk added.
"There'll be temporary exemptions in the trading of ETS certificates. This will lead to lower gas prices," added Austrian chancellor Christian Stocker, who is "very confident" that the EU can make progress on the issue of free ETS allowances as well.
Commission president Ursula von der Leyen unveiled the €30bn ETS booster and other short-term ETS measures at the end of an EU leaders' summit on Friday. She also committed to delivering an ETS review before July.
"We persuaded even pro-climate countries like Scandinavia and Germany to accept a tailored approach," Tusk said, adding that free allowances for heavy industry will be secured "for many years". "This problem is resolved," Tusk said.
Italian prime minister Giorgia Meloni confirmed that leaders decided to approve the possibility of urgent national measures to ease electricity prices, including ETS-related levers. "This decision allows us, starting Monday, to work with the commission based on our energy bills decree, which is critically important for immediate action," she said, stressing long-term ETS reform is still needed to address uneven structural impacts.
Romanian president Nicusor Dan said the €30bn will fund cross-border grid upgrades and interconnections. He noted that the commission is open to capping gas prices — which set power prices — or redirecting windfall profits from low-cost generators to consumers.
But Dutch prime minister Rob Jetten said EU leaders concluded that the ETS must remain the basis of the bloc's industrial policy.
French president Emmanuel Macron and German chancellor Friedrich Merz reaffirmed their support for the ETS, with Merz specifically warning against "fundamental" interference.
Belgian prime minister Bart De Wever noted EU leaders' full spectrum of opinions on the ETS from sceptical to enthusiastic. De Wever wants any state aid allowed to preserve a level playing field between countries.
Any ETS or electricity market reforms require commission proposals and approval by the European Parliament and member states.
