EU lawmakers are divided over the Green Deal and carbon market reform after Commission President Ursula von der Leyen's State of the Union speech. Right-wing groups criticized the EU carbon price and the 2035 zero-emission car requirement, while left-wing and centrist parties defended the bloc's climate strategy. The Greens want a parliamentary inquiry into implementation shortfalls. The outcome matters for carbon markets and clean energy investment. If the ETS and related policies get weakened or delayed, price signals become less predictable for project developers. The inquiry could also expose where member states are behind on spending recovery funds meant for grids, buildings, and industrial decarbonization.
