Ten EU member states, led by Italy and Poland, urge the EU to reconsider ETS2—a new carbon price on heating and transport fuels—within the broader ETS revision, arguing against new climate taxes under current economic and geopolitical conditions.

They ask the Commission to rethink the ETS2 price set to start in 2028 and push for direct consideration of these concerns in the ongoing revision.

The ETS2 proposal, delayed to 2028, aims to spur cleaner cars and heating systems while raising revenues to fund emissions reductions.

Under ETS2, fuel suppliers would pay for CO2 emissions from heating and transportation fuels, targeting building and road transport sectors.

The dispute risks complicating the wider reform of the carbon market, as opposing countries together hold enough votes to block changes they oppose.

The Commission says it does not plan to amend ETS2 before its launch, but national governments and EU lawmakers could add amendments during negotiations, where the ten countries hold veto power.

Supporters contend the new carbon price is essential for the energy transition, with revenues reinvested to aid that shift.

Brussels postponed the ETS2 rollout by a year amid concerns about higher consumer fuel prices, while supporters argue the charge is needed to accelerate the shift to clean energy and fund consumer-oriented clean-technology investments.

Signatories such as Cyprus, Italy, Poland, and others call for more free CO2 permits for industry with fewer binding conditions, contrasting with the Commission’s stance tying free permits to decarbonization investments.

The Commission is expected to propose an ETS revision and ETS2 details soon, as part of a broader roadmap to reach agreement by early 2027.

If amendments are blocked, the bloc’s stance could shape the ETS revision and the fate of ETS2 amid ongoing debates.

The signatories include Bulgaria, Cyprus, the Czech Republic, Estonia, Greece, Hungary, Romania, Slovakia, Italy, and Poland, collectively holding enough votes to influence policy outcomes.