Story perspectives

EU Considers Major Changes to Emissions Trading System

2/12/2026

Summary

Story summary

The EU is weighing three Emissions Trading System options—eliminating free CO2 permits, conditioning them on low-carbon investments, or keeping the current system—to address industrial competitiveness.
German Chancellor Friedrich Merz has called for a review of the ETS if it does not support industry.
European Commission President Ursula von der Leyen defended the ETS, citing emissions reductions and growth, as the EU readies a carbon market revision this year.

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Story summary

The EU is weighing three Emissions Trading System options—eliminating free CO2 permits, conditioning them on low-carbon investments, or keeping the current system—to address industrial competitiveness.
German Chancellor Friedrich Merz has called for a review of the ETS if it does not support industry.
European Commission President Ursula von der Leyen defended the ETS, citing emissions reductions and growth, as the EU readies a carbon market revision this year.