Brussels bureaucrats get ready for the carbon pricing battle of their lives

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on Euractiv or enjoy below:

🗞️ Driving the news: The EU’s Emissions Trading System (ETS) faces heightened pressure as industry and political opposition grows amid a global carbon pricing slowdown
• EU officials are preparing a major push to tighten the ETS, ensuring CO₂ emissions remain costly and incentivizing reductions

🔭 The context: The ETS covers roughly 40% of global carbon pricing revenues, with a tonne of CO₂ costing around €80
• Worldwide, political support for carbon pricing is waning: California has allocated $4 billion in free pollution permits, New York has weakened climate targets, and Canada has scrapped key consumer carbon prices
• European industrialists claim the ETS is hurting competitiveness, prompting Brussels to prepare for a contentious legislative battle

🌍 Why it matters for the planet: The ETS is one of the most effective tools for limiting industrial carbon emissions in Europe
• Weakening or failing to strengthen the system could slow the EU’s ability to meet its 2030 and 2050 climate goals, undermine decarbonization in energy-intensive sectors, and reduce global leadership in climate mitigation

⏭️ What’s next: EU climate officials aim to push reforms despite resistance, potentially increasing the cost of carbon and tightening caps
• The coming months will test the bloc’s resolve to maintain a functioning, high-impact carbon market while balancing industrial competitiveness concerns

💬 One quote: “Industrialists and politicians are also keen to bury the scheme, accusing it of wrecking the bloc’s economy.” – Nikolaus J. Kurmayer, Euractiv

📈 One stat:
Currently, almost 30% of global greenhouse gas emissions are subject to carbon pricing, with the ETS accounting for 40% of total worldwide CO₂ pricing revenues.

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