Sixth night: US widens strikes on southern Iran, Tehran shells Gulf statesTrump accuses China of election tampering and sows doubt about the US voting system ahead of the midtermsKyiv in turmoil: Zelensky dismisses Defense Minister Fedorov and sides with the generalsNicaragua severs ties with Italy: a dispute over a Moro attackerMerz and Macron invoke Europe's strategic awakeningUS shortens stays for foreign students and journalistsRacist monkey video by Chinese state media outrages ManilaKim Jong Un receives China's number four, Wang HuningChina condemns nationalization of British SteelNetflix grows but disappoints the marketOil prices rise, IEA warns of threat to global energy securityEU Commission reforms emissions trading and ignites a climate rowTrump Media sells fast access to Truth Social postsXi opens World AI Conference and founds a world organization for AI cooperationChina's Moonshot unveils largest open AI modelSpaceX aborts Starship test flight at the last secondSixth night: US widens strikes on southern Iran, Tehran shells Gulf statesTrump accuses China of election tampering and sows doubt about the US voting system ahead of the midtermsKyiv in turmoil: Zelensky dismisses Defense Minister Fedorov and sides with the generalsNicaragua severs ties with Italy: a dispute over a Moro attackerMerz and Macron invoke Europe's strategic awakeningUS shortens stays for foreign students and journalistsRacist monkey video by Chinese state media outrages ManilaKim Jong Un receives China's number four, Wang HuningChina condemns nationalization of British SteelNetflix grows but disappoints the marketOil prices rise, IEA warns of threat to global energy securityEU Commission reforms emissions trading and ignites a climate rowTrump Media sells fast access to Truth Social postsXi opens World AI Conference and founds a world organization for AI cooperationChina's Moonshot unveils largest open AI modelSpaceX aborts Starship test flight at the last second
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EU emissions trading

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The EU Emissions Trading System (ETS) is a central instrument of EU climate policy and is meant to help cut greenhouse gas emissions by at least 55 percent by 2030 compared with 1990; it works on the cap-and-trade principle, with a declining ceiling on emissions and tradable allowances. To prevent competitive disadvantages and the relocation of production abroad (carbon leakage), the EU is introducing the CO2 border adjustment mechanism CBAM, which starts in 2026 and will be fully phased in by 2034; it imposes a CO2 price on imports of steel, aluminum and cement, among others. In addition, ETS2 creates a new system for the buildings and road-transport sectors, due to become operational in 2027, under which fuel suppliers rather than end consumers are required to report. Throughout, there is a persistent tension between ambitious climate goals and concern for the competitiveness of European industry.

Europäische Kommission: About the EU ETSEuropäische Kommission: ETS2Clean Energy Wire

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Friday, 17 July 2026Economy

EU Commission reforms emissions trading and ignites a climate row

The European Commission put forward proposals to reform emissions trading intended to give industry more leeway. Critics warn of a watering-down of climate protection, while business demands relief. The dispute is likely to become one of the year's biggest climate-policy battles.

Politico frames the initiative as a moment of truth for the Commission's climate credibility and writes that Brussels wants to allow industry to pollute more and for longer, against which Parliament and member states are signaling resistance. The Handelsblatt and Die Zeit highlight the underlying tension: climate protection versus competitiveness, with Die Zeit asking what European climate protection achieves if too few countries take part. From the Russian side comes a counterpoint: TASS reports that Russia has appealed to the WTO to clarify the dispute over the EU's CO2 rules and the border adjustment CBAM. Industry demands relief, while climate advocates fear for the instrument's effectiveness. Those involved agree that the reform recalibrates the balance between emissions reduction and location interests and remains internationally contested.

Politico EuropeDie ZeitTASSHandelsblatt