Hungary has joined Italy, Poland and Czechia in demanding a delay to the EU’s planned carbon pricing scheme for heating and transport, triggering a three-hour argument at a Brussels summit. Most member states rejected the proposal, raising questions about the future of one of the bloc’s key climate policies.
What was supposed to be a discussion about tackling Europe’s soaring energy prices turned into a lengthy dispute over the EU’s climate agenda at Thursday’s European Council summit in Brussels. Hungary joined three other countries in calling for the bloc to postpone its planned carbon pricing scheme for road transport and building heating until at least 2030.
According to POLITICO, the first session of talks lasted around three hours, delaying lunch for European leaders until later in the afternoon.
Italy, Poland, Czechia and Hungary called for the EU’s Emissions Trading System 2 (ETS2) to be postponed by a further two years, while Estonia suggested scrapping the measure altogether.
However, most EU member states rejected the proposal, with several diplomats describing it as unacceptable.
What is ETS2, and why is it controversial?
ETS2 is an already-approved EU scheme designed to put a price on carbon emissions from fuels used for road transport and building heating. Under the current legislation, it is due to take effect in 2028.
The system is intended to encourage households and businesses to switch to cleaner alternatives by making fossil fuels more expensive. Critics, however, fear that it could increase household energy and transport costs, particularly for people who cannot easily afford to upgrade their heating systems or change how they travel.
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The dispute reflects a growing divide between governments that want to protect households from rising energy costs and those determined to maintain the EU’s climate commitments.
Although Thursday’s argument focused on ETS2, the debate also touched on the bloc’s existing Emissions Trading System (ETS), which puts a price on carbon emissions from industrial facilities and power plants.
Together, the two systems are intended to play a central role in reducing greenhouse gas emissions across the European Union.
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Hungary joins a growing coalition seeking changes
Italy and Poland have emerged as leading voices calling for changes to the EU’s carbon pricing policies. Their efforts have attracted support from several other countries, including Hungary. According to POLITICO, a group of member states concerned about the existing ETS had grown from 10 countries in March to 16 by the time of a meeting led by Poland earlier this week.
The countries argue that carbon pricing places additional pressure on household bills and businesses at a time when Europe is struggling with energy costs and geopolitical uncertainty. Italy and Poland also secured support from Czechia, Slovakia, Hungary and Greece for a request to reassess ETS2 and postpone its entry into force until at least 2030.
However, that coalition struggled to win over the majority of EU leaders at Thursday’s summit.
The dispute comes as the European Commission prepares to review the existing ETS in July. Some governments want the review to lead to further easing of the system, even though the proposed reforms already envisage less stringent carbon restrictions over the coming decade to give industry more time to invest in cleaner production methods.
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Nordic countries, France and Germany oppose changes
Several EU diplomats told POLITICO that Nordic countries and the Netherlands strongly oppose changes to ETS2. France and Germany have also backed that position. Nevertheless, the political future of the existing ETS has become less certain as far-right parties gain support in several European countries.
In Germany, the Alternative for Germany (AfD), which opposes the ETS, has strengthened its position following strong performances in regional elections in September. In France, Marine Le Pen’s National Rally is leading in opinion polls ahead of the 2027 presidential election.
The political pressure could complicate efforts to maintain support for the EU’s climate policies, particularly if energy costs remain a major concern for voters. Jordan Bardella, a prominent National Rally politician, criticised the existing carbon pricing system in the European Parliament in May, questioning who ultimately bears its costs.
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