Reports indicate that EU lawmakers are facing difficulties in reaching a compromise on carbon market reforms. Jytte Guteland, the European Union Emissions Trading System (EU ETS) shadow rapporteur, has emphasized the need to avoid any dilution of the reforms.
The primary opposition stems from concerns over the introduction of ETS2 in 2026, which some fear would further increase the already high cost of living. ETS2 would impose carbon costs on fuel suppliers for vehicles and home heating. Various compromise suggestions have been put forward, including delaying the launch until 2027 or 2028 or gradually implementing the system. However, a leaked note from the Commission, seen by Reuters, indicates that such delays or phased implementation could jeopardize the EU’s climate target. ETS2 is expected to contribute 45% of the additional CO2 reductions required from these sectors to achieve the 2030 goal of a 61% emissions reduction compared to 2005 levels.
The Commission note further highlights that if the proposal is scrapped, it would necessitate the implementation of significantly stricter national policies as an alternative.
