EU climate policy and EU-ETS emission trends

An analysis of European election results in Dutch municipalities suggests that stricter EU climate policies do not necessarily lead to increased opposition in regions with high industrial CO2 emissions. Instead, support for parties seeking to slow the climate transition has risen regardless of local industrial output, potentially due to the predictability of climate policies and targeted compensation measures.

The European Union Emissions Trading System (EU-ETS) remains a primary driver for reducing industrial greenhouse gases. Under the current reduction schedule, the number of emission rights will decrease annually, with no new rights issued starting in 2039. This requires energy-intensive industries to significantly cut emissions.

Political pressure regarding the EU-ETS is growing. Leaders in France and Germany have expressed criticism of current emission permit prices, joining officials from Austria, Czechia, and Poland. Following these political statements, the price of EU-ETS rights dropped from approximately 81 euros to 72 euros over a single weekend in February 2026. An evaluation of the EU-ETS and its reduction schedule is scheduled for the second half of 2026.