EU's carbon agenda faces political reality as ETS2 backlash grows, CORSIA rules soften

The EU’s ETS2 faces possible revisions as aviation carbon credit rules are eased. (Photo: Pixabay)

The European Commission will propose revisions to the EU Emissions Trading System on Friday, as political resistance grows over ETS2 and Brussels softens aviation carbon credit rules.

Ten member states, including Italy and Poland, have urged the Commission to reconsider the planned 2028 carbon market for road transport and building fuels, arguing that households should not face additional climate-related costs amid economic and geopolitical pressures.

Unlock the full article to explore three key takeaways:

1. Ten EU member states have formally called for ETS2 to be reconsidered as part of the wider carbon market review, creating a coalition large enough to block amendments they oppose.

2. The Commission has relaxed its CORSIA credit criteria for Phase 1 and postponed the stricter requirements until Phase 2 begins in 2027, potentially dividing the aviation credit market into separate price tiers.

3. Asian airline purchasing accelerated ahead of the July 17 review, showing how EU regulatory decisions are influencing procurement timing and carbon credit prices beyond Europe.