Romania has joined a group of ten European Union member states requesting the European Commission to reconsider the introduction of the ETS2 system, the new carbon tax applied to fuels used in transportation and heating homes. The signatory governments warn that the measure risks leading to price increases for the population in an already difficult economic and geopolitical context.
According to Reuters, citing a joint document consulted prior to the presentation of the Commission’s proposals on the reform of the European Emissions Trading System (ETS), the initiative is supported by Italy, Poland, Bulgaria, Cyprus, Czech Republic, Estonia, Greece, Hungary, Romania, and Slovakia.
The ten states are requesting that the introduction of ETS2 be reconsidered in the upcoming review of European legislation.
"European citizens should not be faced with new climate taxes in the current economic and geopolitical circumstances. ETS2 must be directly addressed in the review and carefully reconsidered," the joint document states.
What is ETS2
ETS2 represents the extension of the European Emissions Trading System to fuels used in road transport and for building heating. In practice, fuel and energy suppliers will pay for CO₂ emissions, a cost that could be transferred, at least partially, to consumers.
The system is set to come into force in 2028. Its implementation was initially scheduled for 2027, but the European Commission has already decided on a one-year delay, following concerns expressed by several governments regarding the impact on the population.
States also request changes for industry
In the document submitted to the Commission, the ten states also request changes to the current ETS system, which applies to major industries, energy producers, airlines, and maritime transport.
The governments are asking for a greater number of free emission certificates for industry and less restrictive conditions for their allocation. However, the European Commission argues that additional facilities should be reserved for companies investing in emission reduction and industrial capacity development within the EU.
Tough negotiations in the EU
The revision of the ETS system is one of the most significant reforms of European climate policy. While countries like Germany and Sweden support the implementation of ETS2, arguing that it will accelerate the transition to less polluting transportation and heating systems, opponents warn that the measure could fuel inflation and increase household bills.
The European Commission states that revenues from ETS2 will be used to support citizens and fund the transition to clean technologies, thus limiting the impact on consumers.
The group of ten states, however, holds enough votes in the decision-making mechanism of the European Union to influence negotiations and, under certain conditions, to block proposals they deem unfavorable. The reform of ETS and the introduction of ETS2 are expected to be among the most contentious European issues in the near future.