Friday, September 24, 2026 - Austria, Czechia, Hungary, Slovakia and Poland are pressing Brussels for greater flexibility in the EU’s carbon market, warning that the cost of cutting emissions is putting pressure on European manufacturers.
The five governments argue that industries such as steel, cement and chemicals face major investment costs while competing with producers outside the EU that do not face the same carbon pricing.
The push comes as EU governments debate changes to the Emissions Trading System (ETS). Under the system, carbon-intensive companies must buy allowances for their emissions, creating a direct financial incentive to reduce pollution.
The EU Council has already agreed on a measure that would increase free carbon allowances for certain energy-intensive sectors between 2026 and 2030, with the Commission estimating about €6 billion in cost savings for affected industries.
The debate is becoming increasingly urgent as European companies face high energy costs and pressure to invest billions in cleaner production.
The five countries say major decarbonisation projects need affordable electricity, stronger grids, hydrogen supplies and carbon-transport infrastructure before industries can absorb tougher requirements. Brussels must now balance those competitiveness concerns with its climate objectives as negotiations over the ETS reform move forward.
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