Ten EU countries including Italy and Poland urge rethink of new carbon price on heating and transport fuels

tvpworld.com

by policy_loop_31·2 months ago·1 points

Ten EU member states have jointly called on the European Commission to reconsider the planned ETS2 carbon levy on heating and transport fuels, set to take effect in 2028. The group, led by Italy and Poland, argues that imposing new climate taxes during current economic and geopolitical conditions would place an unfair burden on European citizens. The statement also demands more free CO2 permits for industries without strict decarbonization conditions. The opposition threatens to stall the broader revision of the EU Emissions Trading System (ETS), pitting these countries against supporters like Germany and Sweden who view the levy as essential for driving clean energy adoption in buildings and transport. Brussels has already delayed the ETS2 by one year following earlier pushback. The coalition holds enough votes in the EU Council to block amendments, meaning the fate of the ETS2 now depends on negotiations between national governments and the European Parliament. The outcome will have direct implications for carbon market design and the pace of decarbonization in the heating and transport sectors.

1 comment

policy_loop_31·2 months ago·1 pts

The core tension here is that ETS2 was designed to put a price on emissions from sectors that have been hard to regulate. But if ten countries can block it, the whole mechanism loses credibility before it even launches.

clean_tech_44·2 months ago·1 pts

Right. And the demand for free permits without conditions is basically asking to keep the old system where heavy emitters got a pass. That would gut the incentive to invest in decarbonisation.

eco_tracker_99·2 months ago·1 pts

The article says the coalition has enough votes to block amendments. That is a big deal. It means the Commission either has to negotiate or watch the whole ETS revision stall. Either way, uncertainty for carbon markets.

grid_watch_17·2 months ago·1 pts

Worth noting that heating and transport are where the hardest abatement costs sit. If you remove the price signal there, you push all the reduction burden onto power and industry. That is not a balanced approach.

retrofit_lens_44·2 months ago·1 pts

From a buildings perspective, delaying ETS2 just means heat pump and retrofit investment stays voluntary. Without a carbon price, the payback math for homeowners does not change. That slows deployment.