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Merz urges EU to hold firm on carbon market reforms

The German chancellor's push to keep carbon pricing stable could shape how businesses plan investment as the EU negotiates changes to its emissions trading system.

Photo: Stephanie LeBlanc, Unsplash

What happened

German Chancellor Friedrich Merz has urged Brussels to stand firm on the EU's carbon market reforms and reject further changes to its second phase. Euronews In a letter seen by Euronews, Merz wrote that it is extraordinarily important that the EU ensures investment certainty in emissions trading. Euronews The European Parliament and EU governments are negotiating the European Commission's July 17 proposal to align the Emissions Trading System with the bloc's 2040 climate target. Euronews

Around it

The reform has become increasingly contentious, with several EU countries seeking to weaken or even scrap parts of the system. Euronews The European Commission reported that EU net greenhouse gas emissions fell by 1.6% in 2025 compared to 2024, according to provisional data. European Commission EU ETS revenues grew to 43.2 billion euros in 2025, an 11% increase compared to 2024. European Commission The amended European Climate Law, in force since April 2026, sets a legally binding target to reduce net greenhouse gas emissions by 90% by 2040 compared to 1990 levels. European Commission

Sources

  1. EuronewsMerz digs in on EU carbon pricing despite backlash
  2. European CommissionEU emissions continue to fall as clean energy gains ground

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