EU leaders on competitiveness: technological neutrality to counter high energy prices

Brussels – The principle of technological neutrality and free allowances under the European Union Emissions Trading Scheme (ETS). These are the points that the heads of state or government of the 27 Member States put in writing in the chapter on competitiveness and global economic challenges in the conclusions of the European Council currently taking place in Brussels. 

The European Council “ recalls the need to accelerate work on lowering energy prices, on the clean transition and decarbonisation, taking into account technological neutrality, and on strengthening our resilience.” Furthermore, it “takes note of the Commission’s intention to come forward with a concrete proposal by mid-July 2026 on the review of the ETS system, including on free allowances, in line with the March 2026 letter by its President, and, at the same time, to present a separate proposal to address concerns expressed by some industrial sectors on ETS benchmarks, while preserving the essential role of the ETS in the climate and energy transition,” the European Council writes. 

The leaders held the discussion “against the backdrop of the challenging geoeconomic context,” discussing “ongoing efforts to strengthen EU competitiveness and strategic autonomy, increase resilience and economic security, promote technological innovation, sustain Europe’s prosperity and social model and improve living standards.”

Recalling the objectives and timelines set out by the European Council last March, the Heads of State or Government “ took stock of progress on the ‘One Europe, One Market’ agenda and its delivery in line with the interinstitutional Roadmap.” The Council “underlines the urgency of decisive progress on the Single Market, on simplification and reducing administrative burdens, including on further initiatives to speed up planning and permitting procedures, on affordable energy prices and the Energy Union 2030, on fostering Europe’s industrial renewal and innovation and reducing dependencies, and on mobilising investment, in line with the agreed deadlines”, the leaders said, adding that they remain “committed” to the issue of competitiveness and will return to the subject at their October meeting.