EU Weighs Looser Carbon Rules, State Aid to Cut Energy Costs (1)

March 12, 2026, 2:30 PM UTC

The European Commission is considering relaxing carbon-permit supply rules and allowing more state aid as part of an emergency plan to cut spiking power prices, according to people familiar with the plans.

The EU’s executive arm is also exploring whether to temporarily ease rules on granting free emissions permits to companies in its carbon market, as well as allowing lower grid fees and energy taxes, the people added, speaking anonymously to comment on the private talks.

The EU’s price of carbon permits dropped nearly 5% after publication, before rebounding slightly.

The commission will present its options, which are still subject ...

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