Sweden and allies reject calls to postpone new EU carbon market

Sweden and allies oppose delaying the EU carbon market for heating and transport. They warn that further changes would undermine climate goals and investments.

Sweden SESE, Denmark DKDK, Finland FIFI, and Luxembourg LULU have circulated a joint paper within the European Union to formally oppose calls by other EU governments for a delay to the upcoming second carbon market, known as ETS2 (EU's second carbon market). The four nations warned that any further postponement or amendments to the market-based price of the system would substantially undermine EU climate policy and increase investment uncertainty, according to the paper shared with the European Commission.
The policy dispute is unfolding as EU ambassadors gather to sign off on stronger controls for the new market after 19 countries requested them. While the broader group of member states, including Slovakia SKSK and the Czech Republic CZCZ, continues to participate in discussions regarding the transition, the coalition of four emphasizes that the current timeline is necessary to maintain the integrity of the policy.
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