EU Carbon Surges After Leaders Show Support for Key Climate Tool

Carbon prices jumped the most in almost two years after European Union leaders backed keeping the bloc’s carbon market in tact, favoring instead targeted changes to calm volatility and support heavy-emitting industries.

EU heads of state acknowledged the importance of preserving the “essential role” of the Emissions Trading System in the climate transition, following a summit that ended late Thursday. German Chancellor Friedrich Merz — who triggered a sell off in the carbon market last month after he floated “postponing” the system — told reporters after the meeting that the ETS needs fine-tuning rather than fundamental change.

“We are not ...