EU Carbon Price Debate: A Clash of Climate Policies

Ten European countries, including Italy and Poland, have called on the EU to reconsider a new carbon price on fuel, as part of an emissions trading system revision. They argue the economic circumstances don't favor new climate taxes. This opposition could complicate the EU's climate policy update.

Ten European countries, led by Italy and Poland, have voiced opposition to the European Union's proposed new carbon price on fuel, part of an upcoming revision of the emissions trading system, according to a joint statement obtained by Reuters.

This opposition could derail Brussels’ plans for its main climate change policy, pitting these nations against supporters like Germany and Sweden. The European Commission is set to propose a revision on Friday, which would make power plants, factories, airlines, and shippers pay for CO2 emissions.

The 10 dissenting countries argue against introducing ETS2—a new CO2 price on heating and transport fuels planned for 2028—citing economic and geopolitical circumstances. Their statement also demands changes to existing carbon markets, like more free CO2 permits, challenging the EU's emphasis on decarbonization investments.