Ten European Union member states including Italy and Poland have formally asked the European Commission to reconsider the planned ETS2 carbon price on heating and transport fuels, which is currently set to launch in 2028. The countries argue that imposing new climate taxes under current economic and geopolitical conditions would harm consumers. The statement also demands that the EU give industries more free CO2 permits without strict decarbonization conditions attached. The European Commission is set to propose a broader revision of the existing Emissions Trading System on Friday, but has so far resisted reopening the ETS2 timeline. Supporters like Germany and Sweden say the charge is essential to drive the shift to cleaner cars and home heating, with revenues earmarked to help households transition. The opposing bloc has enough votes under EU rules to block amendments they do not agree with, setting up a direct political showdown. This is a key signal for carbon market participants and anyone tracking EU climate policy. The outcome will directly affect the price signal for transport and heating emissions, the pace of clean technology adoption, and the political viability of expanding carbon pricing to new sectors. The Commission's proposal on Friday and the subsequent negotiations will determine whether ETS2 moves forward on schedule or faces further delays or structural changes.
