Key facts
- Sweden will oppose any attempts to weaken the EU's Emissions Trading System (ETS).
- A coalition of ten EU countries is pushing for the ETS rules to be relaxed.
- Sweden argues that a weaker ETS would negatively impact climate goals and European competitiveness.
- Sweden has formally urged Ireland, holding the EU Council presidency, to maintain current ETS rules.
Sweden has declared its intention to block any attempts to weaken the European Union's proposed decarbonization scheme, specifically the Emissions Trading System (ETS), ahead of a critical policy review. Swedish Minister for EU Affairs Jessica Rosencrantz stated that her country "will fight to keep the Emissions Trading System strong" against a growing coalition of member states advocating for relaxed rules.
Rosencrantz argued that a weaker ETS would be detrimental to both the climate and Europe's overall competitiveness, potentially undermining investments already made in the green transition. She emphasized that companies investing in sustainability should not be disadvantaged by a lowering of standards.
Currently, ten of Europe's largest economies, including Poland, Italy, Czechia, and Austria, are publicly campaigning to dilute the ETS, citing concerns about its impact on industry and consumer energy bills. The European Commission, led by President Ursula von der Leyen, is scheduled to release its review of the ETS on July 17.
Ireland, which holds the rotating presidency of the Council of the EU, will be tasked with negotiating a compromise on the issue. A letter obtained by POLITICO revealed that Sweden has urged Ireland's Europe Minister to ensure "predictability" by maintaining the current ETS framework, including its scope for waste incineration and the inclusion of ships over 400 gross tons.
In support of maintaining the ETS in its current form, Spain, Finland, the Netherlands, Portugal, Luxembourg, and Sweden have joined a joint campaign.