Saturday, 18 July 2026 · EconomyEU loosens emissions trading and ignites a climate dispute
The European Commission wants to ease the CO2 price burden on industry and is stepping back from strict climate targets, but is extending emissions trading to aviation and waste. Critics speak of “dangerous window dressing” and a hollowing out of climate protection. Supporters see a pragmatic compromise that rescues emissions trading in difficult times.
The reform eases the CO2 price burden on companies and gives them more time, but in effect lowers the climate targets. The left-leaning taz judges that this will not save industry and draws the wrong conclusions, while the liberal Die Zeit finds that the Commission has given in to industry pressure and at the same time rescued emissions trading, which is remarkable in the age of Trump. Politico reports that energy-intensive industry is dissatisfied and speaks of “dangerous window dressing,” with only the DIHK seeing anything positive. The conservative Le Figaro highlights that a net-zero target by 2039 is regarded as unrealistic, that firms would be allowed to emit for longer, but that emissions trading would be extended to aviation and waste. Thus the accusation of betraying the climate, industry's complaint about too little relief, and the interpretation as a pragmatic rescue stand opposed.
taz · Die Zeit · Politico Europe · Le Figaro
Friday, 17 July 2026 · EconomyEU Commission reforms emissions trading and ignites a climate row
EU Commission reforms emissions trading and ignites a climate row
The European Commission put forward proposals to reform emissions trading intended to give industry more leeway. Critics warn of a watering-down of climate protection, while business demands relief. The dispute is likely to become one of the year's biggest climate-policy battles.
Politico frames the initiative as a moment of truth for the Commission's climate credibility and writes that Brussels wants to allow industry to pollute more and for longer, against which Parliament and member states are signaling resistance. The Handelsblatt and Die Zeit highlight the underlying tension: climate protection versus competitiveness, with Die Zeit asking what European climate protection achieves if too few countries take part. From the Russian side comes a counterpoint: TASS reports that Russia has appealed to the WTO to clarify the dispute over the EU's CO2 rules and the border adjustment CBAM. Industry demands relief, while climate advocates fear for the instrument's effectiveness. Those involved agree that the reform recalibrates the balance between emissions reduction and location interests and remains internationally contested.
Politico Europe · Die Zeit · TASS · Handelsblatt
Forecast · Assessment
●Most likely60%
The proposal triggers a long dispute with Parliament and member states that ends in a compromise with watered-down requirements.
▲Worst case20%
The reform hollows out emissions trading, jeopardizes the EU's climate targets and weakens Europe's role model.
▼Best case20%
A balanced compromise combines relief for industry with credible climate protection and stabilizes the CO2 price.