The week the EU’s climate foundations started to shake

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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: The EU’s Emissions Trading System (ETS), a cornerstone of its climate policy, is under fire as leaders argue that high carbon prices threaten economic stability
• The debate intensified at recent summits, with countries calling for reforms to reduce the price of carbon, fearing it undermines European industry competitiveness

🔭 The context: The ETS has been successful in cutting emissions from factories, power plants, aviation, and shipping
• However, as carbon prices soar, countries like Germany, Poland, and Austria are urging the EU to reconsider its approach to avoid harming industries, especially in times of high energy prices

🌍 Why it matters for the planet: The EU’s green transition faces significant challenges, with economic pressures and political debates potentially slowing the progress needed to achieve climate goals
• The future of the ETS will directly impact Europe’s ability to meet its emissions reduction targets and its position in the global fight against climate change

⏭️ What’s next: With the European Commission expected to review the ETS this summer, potential reforms could reshape Europe’s carbon pricing, balancing industry concerns with climate commitments.

💬 One quote: “The ETS, which should be around €30 to €40, is now over €80,” – French President Emmanuel Macron

📈 One stat: The price of carbon permits under the EU ETS dropped from €81 to €72 in just one week due to growing political pressure

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