The European Union Emissions Trading System (EU ETS), a cornerstone of the EU's climate policy, is facing increasing criticism. Several industries and member states believe that the cost of carbon is weighing on the competitiveness of the European economy, already weakened by international competition and energy tensions linked to the war in the Middle East.
Established in 2005, this mechanism requires the most polluting industries to purchase allowances to cover their emissions. The price of a tonne of CO₂ is currently around 70 euros, while the number of available allowances is gradually decreasing to encourage emissions reductions.
Growing political pressure
Some countries, notably Poland and the Czech Republic, have long called for reform of the system. They have recently been joined by Italy, which proposes suspending the carbon market in order to completely overhaul it. Several industrialists are also calling for a cap on the price of CO₂ and for free allowances to be extended beyond 2034.
Faced with these criticisms, other states, including Spain and the Scandinavian countries, defend this mechanism as a central tool for the energy transition. The European Commission is due to present a revision of the system in 2026, but without calling into question its fundamental principles, while seeking solutions to limit the impact of energy costs on the European economy.
