The postponement of the EU Emissions Trading System II (EU-ETS II) is raising serious concerns about the viability of achieving the bloc’s climate goals, according to Dirk Messner, president of the German Environment Agency (Umweltbundesamt). Originally slated for implementation in 2027, the system – designed to regulate emissions from buildings and transportation – has been delayed until 2028, a decision critics attribute to pressure from member states hesitant to implement stringent climate measures.
Messner has warned that this delay significantly tightens the margin of error in meeting the ambitious 2030 climate targets. He highlighted the existing sluggishness in reducing emissions from the sectors covered by EU-ETS II, stating that past progress has fallen considerably short of what’s needed. The system itself was intended to stimulate investment in innovative, climate-friendly technologies while incorporating social safety nets to mitigate potential economic impacts.
The delay, Messner cautioned, necessitates a more aggressive pursuit of alternative climate mitigation strategies. “Other measures must be implemented with even greater consistency to close the gap” he stated, implying a potentially intensified pressure on existing policies and a possible acceleration of regulation across other sectors.
Adding a layer of complexity, Germany’s own carbon price for these sectors – which will be determined through auction for the first time in 2026 – is set within a range of €55 to €65 per tonne of carbon dioxide. While this pricing structure is expected to improve the economic viability of climate-friendly technologies in areas like building renovation and transportation, it also risks increasing energy costs for consumers. The balance between incentivizing green technologies and minimizing the burden on households will be a key political challenge as the EU works to adapt its climate action strategy in the wake of this significant policy shift. The postponed EU-ETS II now becomes a crucial, albeit delayed, cornerstone of broader European climate policy, demanding a far more intense focus on complementary actions to ensure its ultimate success.