Overview
- Environment ministers agreed to push the start of the transport‑and‑buildings carbon market (ETS2) from 2027 to 2028, with the compromise driven by concerns raised by Poland and others and still requiring EU Parliament consent.
- Germany could face a one‑year distortion in 2027 because its national CO2 price for heating and transport would continue while neighbors wait for ETS2, with Peter Liese calling the situation unfair and Michael Bloss urging a bridging solution.
- German industry leaders, including Evonik’s CEO and the chemical association, argue rising CO2 costs intensify economic strain and urge reforms or relief rather than additional burdens.
- The scheduled phase‑out of free CO2 certificate allocations to industry begins next year and ends by 2034, and German officials signaled openness to adjustments for struggling sectors without scrapping climate targets.
- Officials point to the legally required Climate Social Fund to support low‑income households and small firms, while the Commission has proposed damping initial ETS2 prices and experts expect a low starting level; ETS1 has already cut covered emissions by 47% in Germany and 51% EU‑wide since 2005.