A coalition of EU member states are pushing for a significant delay in the implementation of the bloc’s proposed Emissions Trading System (ETS2), designed to encompass buildings and transport sectors. According to reports from Politico, Poland, Czechia, Slovakia, Cyprus and Hungary are preparing a formal letter to European Commission President Ursula von der Leyen, requesting a postponement of the scheme’s launch from 2027 to 2030. While seeking support from other member states, the initiative has thus far met with resistance.
The proposed delay, outlined in the draft letter obtained by Politico, coincides with a critical meeting of the European Council scheduled for this Thursday, where the EU’s long-term climate target for 2040 will also be debated. Citing Article 191 of the Treaty on the Functioning of the European Union – which mandates consideration of differing national conditions and avoidance of disproportionate burdens during environmental policy implementation – the dissenting nations are framing their request as a matter of practicality and fairness.
The letter expresses “deep concern” regarding potential “social, economic and political disruptions” arising from the ETS2, particularly given the current climate of high inflation, volatile energy prices and ongoing geopolitical instability. It highlights the continued reliance on fossil fuels for heating and transportation within many EU nations, emphasizing the disproportionate impact on low-income households and small businesses already struggling with soaring energy costs. Critics argue that the premature implementation of ETS2 risks exacerbating these vulnerabilities and fueling social unrest.
While the signatory states insist the proposed shift does not represent a deviation from broader climate goals, they contend it provides crucial time for technical adjustments, improved price transparency and the development of robust social climate action plans alongside increased energy efficiency measures. The original plan for ETS2 was intended to replace national emissions trading systems and accelerate the reduction of CO2 emissions, with initial estimates suggesting emission certificate prices could exceed €100 per tonne of CO2. The push for postponement underscores a growing rift within the EU regarding the pace and societal impact of climate policy and raises questions about the feasibility of achieving ambitious climate targets while maintaining social cohesion and economic stability. The debate is expected to be contentious ahead of the European Council meeting.