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Chancellor Friedrich Merz has called for a reconsideration of the EU Emissions Trading System (ETS) ahead of an EU leaders' summit. The expansion of ETS 2, initially scheduled for 2027, is now delayed to 2028 due to industry lobbying.

Economists emphasize the need for higher carbon prices to effectively drive climate policy, with current prices at 90 Euro per ton. Although the German cabinet planned to use carbon pricing revenues for supporting low-income households, this initiative stalled. The German Institute for Economic Research highlights that current renewable energy growth is inadequate to meet 2030 goals, with only half of the photovoltaic target achieved by 2025.