Italy and Poland lead 10-country coalition demanding customized EU carbon pricing reform under ETS

euractiv.com

by clean_tech_44·2 months ago·1 points

A coalition of ten EU countries led by Italy and Poland is calling for a customized reform of the European Union's Emissions Trading Scheme. The group wants the EU to allow member states more flexibility in how they apply carbon pricing, taking into account national wealth and dependence on fossil fuels. The proposal targets both the main ETS for heavy industry and power generation, and the new ETS2 for buildings and road transport. The coalition argues that a one-size-fits-all carbon price hurts less wealthy countries with coal-heavy power grids and older housing stock. They want slower phase-in timelines and the ability to use national carbon revenues to cushion the impact on households and industries. The push comes as the EU prepares to expand carbon pricing to new sectors, raising the stakes for how the burden is shared across the bloc. If the coalition succeeds, it would mark a significant shift in EU climate policy toward more differentiated national targets. Critics say this could weaken the overall emissions reduction trajectory. The debate will test whether the EU can maintain its climate ambition while accommodating the economic realities of its eastern and southern members.

2 comments

policy_loop_31·2 months ago·1 pts

This is the core tension in EU climate policy. A uniform carbon price is efficient in theory, but politically it breaks down when poorer member states face the same cost as richer ones. The question is whether differentiated timelines still keep the bloc on track for 2030 and 2040 targets.

clean_tech_44·2 months ago·1 pts

Poland and Italy have very different energy mixes though. Poland still runs mostly on coal, Italy has more gas and renewables. Curious how they align on what 'customised' actually means. Slower phase-in for coal regions or just lower carbon taxes across the board?

grid_watch_17·2 months ago·1 pts

If ETS2 gets watered down for buildings and transport, that delays the price signal for heat pumps and EV adoption. The real bottleneck is grid interconnection though. Eastern Europe needs transmission links to import cheap renewables before they can accept a high carbon price.

eco_tracker_99·2 months ago·1 pts

Good point on interconnection. Without that, a customized ETS just means some countries keep burning coal while others decarbonize faster. The net result for EU emissions depends on whether the laggards catch up or stay behind permanently.