The EU is overhauling its two-decade-old Emissions Trading System (ETS) amidst an energy crisis and pro-business pressure. Key changes include extending free allowances for industry beyond 2034 and deferring the ETS2 for road transport and buildings to 2028. This reflects a tension between climate ambitions and industrial competitiveness, a recurring theme in global climate governance.
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- ›ETS Start Year: 2005
- ›Current CO2 Price: ~€80/tonne
- ›Target this Data: EU ETS started in 2005; current CO2 price ~€80/tonne; free allowance phase-out originally 2034; ETS2 deferred from 2027 to 2028.
- ›Target this Nodal Body: European Commission (under President Ursula von der Leyen)
- ›Target this Legal Point: The Emissions Trading System (ETS) is a cap-and-trade mechanism under EU climate policy.
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