By Michael Szabo

COLOGNE, Germany May 28 (Reuters) – Major changes proposed to the European Union’s emissions market could dramatically alter the landscape for traders, who are increasingly frustrated by regulatory uncertainty and political stalemate.

A deeper 2020 EU greenhouse gas reduction commitment, qualitative and quantitative restrictions on carbon offset eligibility and details on carbon permit auctioning in the scheme’s third phase are among the decisions expected to be made this year by the 27-nation bloc’s executive.

But policymakers at this week’s annual Carbon Expo conference in Cologne were tight-lipped, and the uncertainty caused gloom among traders.

“Obviously the mood would be better with more regulatory certainty,” Emmanuel Fages, carbon analyst at Societe Generale/orbeo, told Reuters on the sidelines of the conference.

“Firms for whom carbon is a core activity remain resilient but they are experiencing a difficult context post-Copenhagen.”