German Chancellor Merz Supports Delay of EU Emissions Trading System Expansion
Chancellor Friedrich Merz advocates for a revision of the EU Emissions Trading System (ETS) before the EU summit. The industry has lobbied successfully for a delay in the ETS 2 expansion, now proposed for 2028 instead of 2027. Economists warn against weakening the ETS, arguing that emissions prices should rise significantly. The German government had plans for carbon pricing revenue to support poorer households, but the proposal stalled. Meanwhile, the German Institute for Economic Research indicates that current renewable energy expansion rates are insufficient to meet 2030 targets.
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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.
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