Spain defends EU’s flagship climate law against attacks from other capitals

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illuminem summarises for you the essential news of the day. Read the full piece on POLITICO or enjoy below:

🗞️ Driving the news: Pedro Sánchez has defended the European Union’s Emissions Trading System (ETS), pushing back against Italy’s call to suspend the bloc’s carbon market
• Spain urged EU leaders to “unequivocally commit” to the green transition
• Italy recently demanded a pause to the ETS, arguing carbon pricing is harming industrial competitiveness

🔭 The context: The ETS, launched in 2005, requires power plants and factories to pay for their emissions
• It regulates roughly half of the EU’s greenhouse gas output
• Adolfo Urso has criticized the system as a “tax” on manufacturers
• The European Commission is set to propose reforms to the carbon market later this year

🌍 Why it matters for the planet: The ETS has helped cut emissions from covered sectors by around 50% since its launch
• Weakening or suspending it could slow Europe’s decarbonization path and undermine climate targets
• Maintaining a stable carbon price signal is key to accelerating clean energy investment and phasing out fossil fuels

⏭️ What’s next: The Commission’s upcoming ETS reform proposal will likely intensify divisions among member states
• Debate will also continue over the second ETS for buildings and transport, currently delayed to 2028
• The outcome could shape Europe’s climate credibility and industrial strategy for the next decade

💬 One quote: “Dismantling the emissions trading system is the wrong answer to high energy prices.” - Pedro Sánchez

📈 One stat: The ETS regulates around 50% of the EU’s emissions and has reduced pollution in covered sectors by roughly half since 2005

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