Eni’s CEO urges EU to pause its carbon trading scheme

what happened

Claudio Descalzi, chief executive of Italian energy group Eni, said on Wednesday that Brussels should put its emissions trading scheme on hold until the conflicts involving Russia and Ukraine and the United States and Iran are settled, according to Seeking Alpha, which cited Argus. He described the system as “a cage that is too expensive for our industry.”

Descalzi pointed to a drop of 30% to 40% in Russian refining output, leaving Europe short of jet fuel and diesel. He also said products moving through the Strait of Hormuz were running at roughly half their pre-war volumes. Extra spending on tanker charters and insurance linked to the Middle East war, he added, had raised the cost of crude by $20 to $30 per barrel.

Citing Ursula von der Leyen’s remarks on reviving refineries, he urged Europe to add refiners to its taxonomy to ease access to funding, cut taxes and relax emissions rules. The remarks come as European leaders gather in Brussels to discuss energy and institutional reform, among other issues.

why it matters

For markets, the call highlights pressure on European refining margins and some uncertainty over carbon allowance pricing if ETS policy changes. It is one executive’s view, not a regulatory decision.

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