European Union leaders are divided over the bloc’s emissions trading system as concerns about energy affordability intensify. The EU’s ETS2 scheme, which will put a carbon price on fuels used in road transport and building heating, is scheduled to launch in 2028 following an earlier postponement. Supporters argue that carbon pricing is essential to cutting emissions and encouraging investment in cleaner alternatives. Critics warn that it could raise costs for households and businesses already struggling with energy bills. At the October 2026 European Council summit, Italy and several other countries pushed for further changes, while Spain and other supporters defended the climate policy framework. Leaders agreed to review the system rather than postpone its launch again. The dispute raises a wider question about how Europe can meet its climate targets without worsening energy insecurity.
