Ireland's EU Council presidency has launched negotiations on major reforms to Europe's climate policy, centered on the EU Emissions Trading System (ETS). The European Commission wants to ease the pace of emissions allowance reductions in the 2030s, extend free carbon allowances for some industries until 2038, and allow limited use of international carbon credits. The goal is to keep European industry competitive while maintaining a 90% emissions reduction target by 2040. Sweden and environmental groups have pushed back, arguing the proposals weaken incentives for companies to decarbonize. Sweden's state secretary said the plan rewards firms that delayed action. The European Environmental Bureau called for better implementation of existing laws rather than deregulation. The ETS has already cut covered sector emissions by 50% since 2005 and generated over 270 billion euros for clean energy. Ministers also discussed Europe's Electrification Action Plan, which aims to nearly double electricity's share of energy consumption by 2040 through EVs, heat pumps, and renewables. The Commission estimates this could cut Europe's fossil fuel import bill by 260 billion euros annually. Ireland's minister said the presidency aims to reach an agreement by December's Council meeting.
