Ten EU countries push to delay or scrap new carbon price on heating and transport fuels

Ten EU countries, including Italy and Poland, have formally asked the European Commission to reconsider the planned ETS2 carbon price on heating and transport fuels. The joint statement argues that European citizens should not face new climate taxes under current economic and geopolitical conditions. The group also demands more free CO2 permits for industry without strict decarbonization conditions. The ETS2, which would impose a carbon levy on road transport and building heating fuels, is already delayed by a year. Supporters like Germany and Sweden say it is essential to drive the shift to cleaner cars and heat pumps. But opponents have enough votes to block amendments, setting up a showdown as the Commission prepares to propose a broader revision of the EU Emissions Trading System this week. The outcome matters for carbon markets because ETS2 would expand carbon pricing to sectors covering about 30% of EU emissions. If delayed or weakened, it could slow investment in electrification and clean heating, while also reducing the Social Climate Fund revenues meant to help households transition.