letter to EU leaders

Von der Leyen: 'Speed up Ets review, more realistic green turn'

In view of the summit on 19 and 20 March

16 March 2026

La presidente della Commissione europea Ursula von der Leyen. EPA/RONALD WITTEK

4' min read

Translated by AI

Versione italiana

4' min read

Translated by AI

Versione italiana

"We are accelerating the work on the next Ets review, in particular to define a more realistic decarbonisation trajectory beyond 2030". This was announced by Ursula von der Leyen in her letter updating the European Council on competitiveness issues ahead of the summit on Thursday 19 and Friday 20 March. "The EU Commission will shortly adopt the Ets benchmarks, taking into account the concerns expressed by industry," highlights von der Leyen, confirming that "the Ets remains a proven tool to drive industrial transformation" and needs to be adapted "to new realities". Brussels will also 'present a proposal to strengthen the market stability reserve' of the Ets 'so that it can deal more effectively with excessive price volatility and keep prices under control in the short term'.

"Since the introduction in 2005" of the Ets, "Europe has reduced its gas consumption by 100 billion cubic metres, helping to protect consumers from high gas prices," von der Leyen points out, recalling that the CO2 emissions trading system "is market-based, technologically neutral and provides certainty for long-term investments, while rewarding first movers." "Based on this system, companies across Europe have made investment decisions for the coming decades. Now we have to make sure that it is also adapted to new realities,' he notes. "It is also clear that we need to accelerate support for energy-intensive industries as they modernise and decarbonise. In view of the creation of the Industrial Decarbonisation Bank, the EU Commission will work on a fast-track bridging instrument, financed through ETS allowances, with a focus on lower income countries,' he adds.

"Already spent 6 billion more on fossil energy imports"

"At present, the EU's security of supply is guaranteed," writes Commission President Ursula von der Leyen. However, rising fossil fuel prices are already weighing on our economy. Since the beginning of the conflict, Europe has already spent EUR 6 billion more on fossil fuel imports: a direct reminder of the price we pay for our dependence. A prolonged disruption of oil and gas supplies from the Gulf region could have a significant impact on our economy'.

Von der Leyen to EU leaders: 'Take action to reduce electricity taxes'

"As far as taxes and levies are concerned," writes von der Leyen, "there is clear room for manoeuvre also through legislation to reduce the taxation of electricity, to remove certain non-energy levies from electricity bills and to ensure that electricity is taxed more favourably than fossil fuels. "In many cases," he points out, "electricity is taxed much more heavily - up to fifteen times - than gas. This places a disproportionate burden on businesses, particularly energy-intensive industries that are making the transition to electrification and decarbonisation'.

"Ready flexibility on state aid against high prices"

"EU countries can grant an immediate electricity price reduction to the most affected energy-intensive industries through the existing state aid framework," von der Leyen announced. "The Commission will further strengthen these mechanisms and make them more flexible, allowing member countries to provide even more immediate support where it is most needed."

Von der Leyen to the 27: 'Energy measures do not delay decarbonisation'

In her letter to leaders on competitiveness and the energy dossier, EU Commission President Ursula von der Leyen took stock of the emergency measures planned by Brussels in recent days. In the text von der Leyen recalled the deployment of the "largest ever release of strategic oil stocks, coordinated by the International Energy Agency" and a "multinational coordination to prepare for the restoration of freedom of navigation in the region. In this regard,' he recalled, 'France, together with other member states and partners, has initiated work to assess the possibility of escorting ships when security conditions allow it'.

The EU also encouraged 'increased energy production in countries that can replace interrupted capacity and call for the avoidance of any export restrictions' and pledged to 'closely monitor the impacts on fertilisers, which are a key concern for farmers and global food security,' von der Leyen explained. "In considering possible further measures to alleviate the immediate impact on consumers and businesses, we should take into account the lessons of the past. A key lesson of the 2022-2023 crisis was that many of these measures were generic and not targeted, which led to inefficiencies and very high fiscal costs. In this context, it is important that any short-term measures do not delay the decarbonisation of the energy system, do not increase demand for oil and gas, are temporary and targeted, and minimise fiscal costs,' she stressed.

Von der Leyen: 'We will evaluate the impact of national emergency price caps on gas'

"Subsidising or capping the price of gas-fired generation and redistributing inframarginal revenues is another tool that some Member States have used, for example during the 2022 energy crisis: the Commission will assess, on a case-by-case basis, the impact of such national emergency mechanisms aimed at limiting the effects of high gas prices on electricity." European Commission President Ursula von der Leyen writes this in her letter to leaders ahead of the European Council on 19 and 20 March. "The design of these emergency mechanisms should in any case avoid distortions of the internal market, preserve long-term investment signals for clean energy and exclude excessive additional demand for gas."