The price of_CO2 unleashes the first major climate rift in Europe

European leaders are questioning the emissions market as the cost of carbon puts pressure on the industry.

For years, the European Emissions Trading System (ETS) was presented as one of the most sophisticated instruments of European climate policy. Their logic was simple: if polluting costs money, companies will invest in cleaner technologies to avoid paying for their emissions. This principle has guided much of the European Green Deal, with which Brussels aims to make the EU the first climate-neutral continent by 2050. However, what for years was considered a model of success is beginning to show political and economic tensions. The trigger is the carbon price, which in a decade has gone from about 10 euros per ton of CO2 to about 80, making the European system the most expensive carbon market in the world. This increase in prices worries several governments and industrial sectors, which fear that the system is beginning to affect European economic competitiveness.

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