This Week in Energy — Brussels (#12, 2026)
Commission opens State aid probe into French nuclear; €6bn Italian hydrogen scheme approved; EU ETS Market Stability Reserve reform proposed; Council amends Iran sanctions.
March 29, 2026 to April 04, 2026
Commission opens State aid probe into French nuclear; €6bn Italian hydrogen scheme approved; EU ETS Market Stability Reserve reform proposed; Council amends Iran sanctions.
📋 In This Week's Newsletter
• 📅 This Week's Calendar in Brussels
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• 📚 What We're Reading This Week
This Week's Calendar in Brussels
- Committee on Transport and Tourism (TRAN): On April 08, the European Parliament's Committee on Transport and Tourism (TRAN) is scheduled to meet. Agenda includes: Chair’s announcements; Date of next meetings; Framework of measures to facilitate the transport of military equipment, goods and personnel across the Union.
- Committee on Transport and Tourism (TRAN): On April 08, the European Parliament's Committee on Transport and Tourism (TRAN) is scheduled to meet. Agenda includes: * * *; Chair’s announcements; Date of next meetings.
European Commission
Commission opens formal State aid assessment of French support to new nuclear programme
The European Commission has launched an in-depth investigation into France’s planned public support for the construction and operation of six new nuclear reactors, as notified in November 2025. The project, involving Électricité de France S.A. (EDF), includes a subsidised loan covering 60% of €72.8 billion estimated construction costs, a 40-year two-way contract for difference, and a risk-sharing mechanism. The Commission will assess the appropriateness and proportionality of the aid, its impact on competition, and compliance with Article 19d(2) of Regulation 2024/1747. The investigation is registered under case SA.119469 and does not prejudge the outcome, allowing France and third parties to submit comments. The Commission highlighted the project’s relevance to security of supply and decarbonisation, while noting concerns regarding efficient behaviour and market power consolidation.
Commission approves €6 billion Italian State aid scheme for renewable hydrogen
The Commission has approved a €6 billion Italian scheme supporting renewable hydrogen production for transport and industrial sectors. The scheme, notified under case SA.118992, uses two-way contracts for difference with strike prices set via competitive bidding and covers both electrolysis from renewables and biogenic sources. The measure will run until 31 December 2029 and aligns with Article 107(3)(c) TFEU and the 2022 Guidelines on State aid for climate, environmental protection and energy (CEEAG). The Commission found the aid necessary and proportionate, contributing to decarbonisation and outweighing negative effects on competition. The scheme is part of Italy’s national efforts under the EU Hydrogen Strategy and Clean Industrial Deal.
EU reinforces the stability and predictability of its carbon market
The Commission has proposed an amendment to the Market Stability Reserve (MSR) Decision in the EU Emissions Trading System (EU ETS), following President von der Leyen’s March European Council announcement. The change would stop the automatic invalidation of ETS allowances in the MSR above 400 million, instead retaining them to strengthen the reserve’s buffering role. This adjustment aims to improve resilience against supply tightness and price volatility, preserving the MSR’s rules-based design. The proposal is submitted to the European Parliament and Council for adoption via the ordinary legislative procedure. A comprehensive review of the EU ETS is planned for July 2026.
Commission Q&A on EU ETS Market Stability Reserve reform
The Commission published a Q&A detailing its proposal to stop the automatic invalidation of ETS allowances held in the Market Stability Reserve (MSR) above 400 million. The reform aims to improve the MSR’s ability to buffer market volatility and supply tightness. The EU ETS, credited with reducing emissions and fostering clean investment, will undergo a comprehensive review in July 2026 to assess further adjustments. The Commission clarified that carbon prices remain market-driven and that the reform does not immediately affect market balance. The measure supports competitiveness and energy security, aligning with broader efforts to keep the ETS effective and flexible.
EU Legislation (Official Journal)
Council Regulation (EU) 2026/759 amending restrictive measures against Iran
Council Regulation (EU) 2026/759 of 30 March 2026 amends Regulation (EU) No 267/2012, updating provisions on dual-use goods and technology in line with Regulation (EU) 2021/821. The regulation re-imposes certain nuclear-related sanctions following UNSC Resolution 2231 (2015) and Council Decision (CFSP) 2025/1972. It is binding and directly applicable, entering into force upon publication in the Official Journal (CELEX: 32026R0759).
Commission Regulation (EU) 2026/784 updates list of aircraft operators under EU ETS
Commission Regulation (EU) 2026/784 of 26 March 2026 amends Regulation (EC) No 748/2009, updating the list of aircraft operators performing aviation activities covered by Directive 2003/87/EC. The revised list is based on Eurocontrol data and reflects operators active in the past four years. The regulation enters into force three days after publication (CELEX: 32026R0784).
Commission Implementing Decision (EU) 2026/753 recognises Latvia's rapeseed greenhouse gas emissions data
Commission Implementing Decision (EU) 2026/753 of 31 March 2026 recognises Latvia's report, submitted under Article 31(2) of Directive (EU) 2018/2001, as containing accurate data for greenhouse gas emissions from rapeseed cultivation. The data may be used for emission savings calculations in NUTS 2 regions. The Decision applies until 21 April 2031 (CELEX: 32026D0753).
Council Decision (CFSP) 2026/762 amends restrictive measures against Iran
Council Decision (CFSP) 2026/762 of 30 March 2026 updates Decision 2010/413/CFSP, reflecting changes in dual-use items definitions and the re-imposition of nuclear-related sanctions on Iran. The Decision aligns with Regulation (EU) 2021/821 and enters into force upon publication (CELEX: 32026D0762).
Commission Implementing Decision (EU) 2026/770 registers European citizens’ initiative for climate-friendly transport
Commission Implementing Decision (EU) 2026/770 of 25 March 2026 registers a citizens’ initiative calling for climate-friendly transport across Europe. The initiative proposes an EU-wide kerosene excise duty, removal of VAT exemptions, and allocation of revenues to a European rail organisation. The Decision addresses the group of organisers led by Jim Odenhoven and Nils Lehman (CELEX: 32026D0770).
EU Council
Energy ministers discuss response to price spikes amid Middle East conflict
EU energy ministers met via informal video conference on 31 March 2026 to coordinate a response to rising energy prices caused by ongoing conflict in the Middle East. Ministers concurred on the need for early gas storage injections and measures to mitigate impacts on vulnerable households and businesses.
What We're Reading This Week
- Strait of Hormuz shutdown: What implications for Europe, for how long and how high can prices go?: A prolonged Strait of Hormuz closure could sharply disrupt European energy supplies and drive oil and gas prices significantly higher.
- Video. Lorry drivers protest near Paris over soaring fuel prices: Truck drivers stage demonstrations outside Paris, demanding government action as fuel prices hit new highs.
- Video. Iran war energy shock puts ECB on alert — Lagarde vows timely response: Escalating energy prices from Iran conflict prompt ECB President Lagarde to signal readiness for swift monetary policy action.
- Video. Oil and gas prices will not return to normal after Iran war, EU warns: EU cautions that ongoing conflict with Iran will keep oil and gas prices elevated, signaling long-term market disruption.
- Solar saved Europe €3bn in fossil fuel imports in March: Which country is leading the way?: Solar energy helped Europe cut €3 billion in fossil fuel import costs in March, with Spain emerging as the top contributor.
