The EC proposes a first adjustment of the_CO2 tax system to relieve industry

The European Commission on Wednesday proposed a first adjustment to the ETS emissions trading system, a cornerstone of the EU’s climate policy that since 2005 has forced more than 10,000 industrial plants on the EU market to buy allowances for each tonne of CO₂ they release.

The reform seeks to bring stability and predictability to ETS, as the price of a tonne of CO₂ has gone from around 5 euros in 2017 to a maximum of 91 euros in 2023, to fall to 86 euros in January 2026 and stand at around 72 euros today, generating criticism for its volatility. The system aims to incentivize companies to invest in clean technologies. In 2024, ETS generated €38.8 billion in revenue, of which €24.4 billion went to Member States, which must allocate part of the revenues to climate and energy, for example in renewables, efficiency or grids, while a part can also be used to compensate industry for indirect carbon costs.

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