Overview
- Environment ministers agreed to postpone the EU-wide carbon market for heat and road fuels to 2028, with European Parliament approval still pending.
- Germany will keep its national CO2 pricing in 2027, with experts saying rates could align with ETS1 levels of roughly €75–80 per tonne and be set quarterly.
- Negotiators aim for a low entry price for ETS2 to limit fuel and heating cost spikes, with reports pointing to an initial ceiling around €45–50 per tonne.
- Poland led resistance over consumer costs, and Prime Minister Donald Tusk called the delay a negotiating success, while EU lawmakers warned it complicates 2030 climate targets.
- Berlin continues channeling CO2 revenues into the Klima- und Transformationsfonds instead of a universal cash rebate, funding measures such as lower grid fees, EV support and heating upgrades.