The article discusses the upcoming proposals from the European Commission regarding reforms in the electricity market, expected to be unveiled in March. One of the key issues highlighted is the significantly higher cost of electricity for European firms compared to their competitors in the United States and China. The article attributes these high prices partly to carbon emission quotas, as discussed during a recent informal summit where leaders expressed the need for review and potential reform.

Czech Prime Minister Andrej Babiš argues that emission quotas are primarily responsible for the increased prices, noting current carbon prices hovering around 70 to 80 euros per ton, which severely affect electricity costs. This sentiment is echoed by other leaders, including Robert Fico and Polish Prime Minister Donald Tusk, who have suggested various measures in response, such as suspending trading in emission quotas (ETS), increasing the number of free quotas, or setting price caps on these quotas.

However, despite the criticisms, there seems to be no substantial move from the Commission to abolish the emission trading scheme. Key political figures, including German Chancellor Friedrich Merz and French President Emmanuel Macron, have defended the system, indicating a complex landscape of political and economic considerations surrounding energy pricing and carbon emissions in Europe. The tension between support for emission trading and the demand for lower energy prices presents a challenging scenario for policymakers as they seek to balance environmental goals with economic competitiveness.