EU Leaders Leave Without Decision On Energy Price Hikes

Published on: 4 January 2022 01:55 AM
by KnowESG
European Union's flag
European Union's flag

A Brief Summary

EU leaders have failed to come to terms with the issue of high energy prices at the recently held European summit. After negotiating for hours, leaders gave up on plans to adopt a joint statement on energy. since March, prices of natural gas all over the world have surged.

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The EU leaders' conference finished early without agreement on energy challenges, forcing the subject to be withdrawn from the Council conclusions.

The Emissions Trading System and an impending push to incorporate nuclear in the EU's taxonomy of sustainable investments were the two main points of contention.

“There is not a secret that there were different opinions around the table,” Charles Michel, the European Council president, said after the summit.

The Czech and Polish delegations are said to have campaigned for an exemption from the ETS, blaming the rising cost of permits for the rise in electricity costs across the EU, a claim that many experts dispute.

Mateusz Morawiecki, Poland's prime minister, criticised the ETS as a "European energy tax" before the summit, but stated that Warsaw has "adversaries" in Western Europe who disagree with Warsaw's position.

Morawiecki tweeted after the summit that the ETS "doesn't work."