V4 and ETS Revision. Unity Despite Split Expectations

EU's biggest climate policy revision is in the hands of some CEE states

17 July 2026

The revision of the EU emissions trading system is due today. How far it loosens the scheme will shape energy bills, competitiveness and transition funding across the V4 – and they have a say.

The mantle passes to CEE

The emissions trading system (ETS) is the EU’s main instrument for cutting greenhouse gases. It requires power plants, heavy industry, shipping firms and airlines to buy a permit for every tonne of carbon dioxide they emit, so that polluting more costs more and cutting emissions pays.

So far, the scheme has worked. Emissions from stationary installations have fallen 51 per cent between 2005 and 2024, and the system covers around 40 per cent of the EU’s greenhouse gas emissions. The revision is meant to align the system with the bloc’s new climate target, a binding 90 per cent net cut in emissions by 2040 against 1990 levels, and to answer complaints that the scheme is hurting European industry.

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