EU leaders clash for three hours over carbon pricing for cars and buildings
EU leaders spent three hours arguing over ETS2, the already approved carbon market that will price emissions from road transport and building heating from 2028. Italy, Poland, Czechia and Hungary sought to postpone its launch until at least 2030, while Estonia suggested abandoning it altogether. Most member states rejected the proposals, with Nordic countries and the Netherlands firmly opposed to changes and France and Germany supporting that position.
The dispute exposed a broader challenge to EU climate policy from right-leaning governments that portray carbon pricing as an added burden on household energy bills. Attention also extends to the existing Emissions Trading System for power plants and factories, whose proposed reform already eases restrictions over the next decade to give industry more time to invest in cleaner production. Italy and Poland want the European Commission’s July review weakened further; a group of countries raising concerns about the system has expanded from 10 in March to 16.
Together, the two carbon markets are intended to be among the EU’s strongest tools for reducing greenhouse-gas emissions. Their political durability is increasingly uncertain, however, as Emmanuel Macron and Friedrich Merz face pressure from far-right opponents. Alternative für Deutschland led two German regional elections in September, while Marine Le Pen’s National Rally was ahead in French polling before elections in 2027.
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