What's happened
The European Commission is reviewing climate and emissions policies, including a proposed emissions trading scheme set for 2027, amid member states' concerns over rising costs and feasibility. Discussions include potential delays and adjustments to meet economic and environmental goals, with upcoming announcements expected this week.
What's behind the headline?
The EU's review of its climate policies reveals a tension between ambitious environmental goals and economic realities. The proposed emissions trading scheme (ETS2) faces criticism for potential sharp price increases, prompting plans for stabilization measures. Member states like Cyprus are pushing for delays, highlighting the difficulty of implementing aggressive climate measures without economic backlash. The EU's approach to balancing cost concerns with climate commitments indicates a pragmatic shift, but risks undermining its long-term environmental objectives. The upcoming announcements will likely shape the bloc's climate trajectory, emphasizing the need for flexible, yet effective, policy tools. This reflects a broader trend of climate policy adaptation in response to economic pressures, which could influence global climate negotiations and investments.
What the papers say
Bloomberg reports on the EU's ongoing review of climate rules, including a potential delay to the ETS2 market and measures to stabilize carbon prices. Politico highlights the EU's plans to tweak carbon pricing and support households, with comments from Ursula von der Leyen on balancing climate targets with economic concerns. Bloomberg also notes member states' requests for delays and the upcoming climate minister meetings. The coverage from Bloomberg and Politico provides a comprehensive view of the EU's current climate policy debates, emphasizing the balancing act between environmental ambitions and economic stability.
How we got here
The EU has been advancing its climate policies, including a 2027 emissions trading scheme covering buildings and transport, amid debates over its economic impact. Member states have expressed concerns about rising costs, leading to discussions on delays and adjustments. The EU also aims to balance its climate targets with economic realities, with recent proposals to modify carbon pricing and forest absorption targets.
Go deeper
- How will the proposed delays impact the EU's overall climate targets?
- What specific measures will the EU announce to stabilize carbon prices?
- How are member states like Cyprus influencing the EU's climate policy timeline?
More on these topics
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The European Union is a political and economic union of 27 member states that are located primarily in Europe. Its members have a combined area of 4,233,255.3 km² and an estimated total population of about 447 million.
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Ursula Gertrud von der Leyen is a German politician and the president of the European Commission since 1 December 2019. She served in the federal government of Germany from 2005 to 2019 as the longest-serving member of Angela Merkel's cabinet.
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Wopke Bastiaan Hoekstra is a Dutch politician serving as Leader of the Christian Democratic Appeal since 2020. He has also been Minister of Finance in the third cabinet of Prime Minister Mark Rutte since 2017.
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Friedrich Merz is a German lawyer and politician. A member of the Christian Democratic Union, he served as a Member of the European Parliament from 1989 to 1994 and was elected to the Bundestag from 1994 until 2009, where he chaired the CDU/CSU parliament