The EU leaders' meeting in Brussels on Thursday turned into a three-hour discussion on the carbon emission tax on cars and home heating. This discussion shifted from focusing on solutions to reduce high energy prices in Europe to a serious dispute among various countries.
Delay in Implementing ETS2
Countries including Italy, Poland, the Czech Republic, and Hungary called for a delay in the implementation of the ETS2 law, which is set to impose a carbon tax on heating and transport sectors starting in 2028. Estonia also proposed that this law be completely abolished. However, these requests faced opposition from the majority of EU member states, and EU diplomats stated that this proposal is "unacceptable."
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Serious Challenges for Green Policies
This discussion reflects growing concerns among right-wing governments who believe that the EU's green policies contradict their efforts to reduce energy costs. While the main topic of today's discussion was ETS2, the previous emissions trading system was also affected. These two systems are considered key tools for the EU to reduce greenhouse gas emissions.
Proposed reforms for the current ETS are currently being discussed in the European Parliament and the EU Council. Italy and Poland are leading a group of 10 member countries that have strongly opposed the ETS. This group has now increased to 16 countries and has called for a weakening of the ETS review in July.
However, the Nordic countries and the Netherlands are strongly opposed to changes in ETS2, a position supported by France and Germany as well. However, the stability of these two countries as defenders of the ETS in the future is in question, especially given the threats from far-right parties in both countries.
French President Emmanuel Macron and German Chancellor Friedrich Merz are under pressure that may affect their positions on the ETS. In France, with the approach of the 2027 elections, the nationalist party of Marine Le Pen is leading in the polls, which could influence positions on the ETS.
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