Von der Leyen and Merz clash over future of EU’s core climate law

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"This technique is applied to scale back CO2 emissions, and on the similar time to allow the businesses to come back to CO2-free manufacturing traces. So if this isn't achievable, and if this isn't the correct instrument, we must be very open to revising it, or at the least to postpone it," he stated to loud applause from trade representatives.

"We should always keep away from every little thing that's jeopardizing the competitiveness of our trade. I am absolutely consistent with all those that are saying we now have to do extra on local weather change," he added, but when insurance policies come "at the price of our industries, at the price of the [jobs] in our trade, that is unacceptable. And that is the rationale why I am consistent with everybody who says if this isn't the correct instrument, we now have to speak about that and we now have to vary it if it does not work."

And whereas in a separate session, French President Emmanuel Macron warned in opposition to "killing" the ETS, he insisted: "Europe can not outline bold local weather aims whereas permitting its industrial base to vanish. Excessive power costs, mixed with carbon prices, are accelerating deindustrialization and never decarbonization."

ETS underneath assault

The ETS requires heavy trade, energy vegetation, airways and transport firms to pay a value — at present round €80 — for each ton of CO2 they emit, a charge meant to incentivize investments in clear manufacturing, power and transport tasks. A declining portion of permits are at present handed out to firms free of charge to help them.

<img decoding="async" width="1024" height="683" src="https://www.politico.eu/wp-content/uploads/2026/02/11/GettyImages-2259427630-1024x683.jpg" alt="" class="wp-image-7926045" srcset="https://www.politico.eu/cdn-cgi/image/width=1024,quality=80,onerror=redirect,format=auto/wp-content/uploads/2026/02/11/GettyImages-2259427630.jpg 1024w, https://www.politico.eu/cdn-cgi/image/width=300,quality=80,onerror=redirect,format=auto/wp-content/uploads/2026/02/11/GettyImages-2259427630.jpg 300w" sizes="(max-width: 1024px) 100vw, 1024px"/> And whereas in a separate session, French President Emmanuel Macron warned in opposition to “killing” the ETS, he insisted: “Europe can not outline bold local weather aims whereas permitting its industrial base to vanish." | Ludovic Marin/AFP by way of Getty Photographs

The carbon value has been rising step by step because the variety of air pollution permits obtainable for buy — and thus the emissions of the sectors lined by the ETS — reduces yearly. Whereas a rising variety of international locations are introducing related carbon markets, the EU’s value is the best on the earth, with most different nationwide methods trailing far behind.

Within the run-up to the Antwerp occasion, the Austrian and Czech leaders in addition to the CEO of Germany’s BASF chemical substances large and the Italian enterprise foyer Confindustria had demanded measures to dampen the ETS value, arguing the charge places EU trade at a aggressive drawback.