EU must be 'honest' about Green Deal: Poland

Spanish Market: Emissions
22/01/25

The EU must undertake a "full and very critical" review of the bloc's Green Deal, Polish prime minister Donald Tusk told the European Parliament.

Tusk outlined Warsaw's view on climate and energy policies during the country's recently-started six-month presidency of the EU's council of ministers.

"If we go bankrupt no-one will care about the world's environment any more," Tusk said, calling for an honest, full and "very critical review of all regulations, including those arising from the Green Deal". Launched in 2019 under the previous European Commission term, also led by president Ursula von der Leyen, the Green Deal was adopted in 2023 and notably included revisions of the emissions trading system (ETS) to support a steeper 55pc reduction in the bloc's greenhouse gas (GHG) emissions by 2030.

Tusk wants any review to identify and change EU laws that may lead to higher energy prices. "There is, for example, the issue of ETS 2 in front of us," he said, singling out the separate trading system covering emissions from road transport and heating fuels, which is scheduled to launch in 2027.

"I would also ask you to reflect deeply, critically and bravely on the consequences of introducing ETS 2 at such a rapid pace," he told parliament. Poland holds the EU council presidency until the end of June.

Any legal changes to the ETS would require a majority within parliament and a qualified majority of the 27 EU member states. But several, including France, Germany, Sweden and Austria, have been outwardly reluctant to tweak climate legislation and delay the introduction of the ETS 2.

"Our union will only survive if we continue to implement the Green Deal, the sole instrument capable of ensuring the survival of our planet," warned Spanish MEP Iratxe Garcia, leader of parliament's second largest group, the centre-left S&D.

By Dafydd ab Iago

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

18/03/25

German climate fund draws interest from Africa

Berlin, 18 March (Argus) — The €100bn climate action allocation in Germany's proposed €500bn infrastructure fund is a "very strong signal" which could help Africa with the huge challenges the continent faces in mobilising private capital, delegates heard at the German-African Energy Forum in Berlin this week. Germany's €100bn climate fund "couldn't come at a better time", Johannesburg-based Africa Investor Group chief executive and chairman Hubert Danso said, given South Africa's presidency of the G20 and the presidency's focus on reducing the cost of capital for developing countries through the planned set-up of a "cost of capital commission", which Danso said is addressing the "unjustified" premiums paid by developing countries. Germany's budget allocation could "fold into" the work of the G20 and the run-up to the UN Cop 30 climate summit in Belem, Brazil, later this year, Danso suggested. Michael Kellner, junior minister at the economy and climate ministry of Germany's outgoing government, told delegates that the multi-billion euro package will provide "much more finance for fighting climate change". Kellner, a member of the Green Party which lost the election but was instrumental in pushing through the €100bn allocation, said that the finance will also be used outside Germany. He pointed to Germany's "flagship" green hydrogen import scheme, H2Global, which is likely to see more co-operation with Africa. Kellner flagged the "impressive" production of green iron in Namibia, which could be of interest to German carmakers. "We will be watching [the €100bn climate allocation] closely," Danso told Kellner and representatives from Germany's development ministry. The main challenge, and opportunity, is to make developing countries' nationally determined contributions (NDCs) to the Paris climate agreement more "investable", Danso said. The next round of NDCs, to be submitted this year, must become more "strategic" and "programmatic", Danso urged. In this context, NDCs can drive carbon markets by opening up collaborative approaches, consultant CarbonWise founder and chief executive Toni Heigl told delegates. If a country decides to exceed its NDC, for instance by pushing certain activities that are dependent on external funds, this "helps to trigger the funding", Heigl said. Carbon markets offer "vast" opportunities in Africa, especially the schemes under Article 6 of the Paris deal, Heigl said. With the final Article 6 rules passed at Cop 29 last year , most companies still "underestimate" the potential of these carbon markets, Heigl said, despite Article 6 credits being "8-10 times" more valuable than those under the voluntary carbon market. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU prepares CBAM export scheme

17/03/25

EU prepares CBAM export scheme

Brussels, 17 March (Argus) — The European Commission is preparing a "solution" for exported goods under the bloc's carbon border adjustment mechanism (CBAM), to be presented before the end of the year. The commission will also expand the scope of the CBAM to "certain" steel and aluminium-intensive downstream products. The changes to the CBAM will be announced as part of a European steel and metals plan. In a draft of the plan to be formally presented on 19 March, the commission points to the need to address the problem of carbon leakage for CBAM goods exported from the EU to non-EU countries. The draft also notes that the commission is currently "quantifying" risks, before proposing an extension of the CBAM to "certain" steel and aluminium-intensive downstream products, so as to address the risk of European producers relocating outside the bloc to avoid higher carbon costs. The metals plan also announces an anti-circumvention strategy for the CBAM to be presented in the second half of 2025. The commission points to the risk of goods from low-carbon production facilities in non-EU countries being redirected to European customers, while carbon-intensive production continues for other markets. The metals plan also points to the risk of "greenwashing" carbon accounting practices, with "electro-intensive metals production benefiting from market-based instruments to appear low-carbon". The commission put forward proposals last month to simplify the CBAM, exempting some 90pc of the firms currently covered by the mechanism. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Timing for EU's 2040 climate goal slips

17/03/25

Timing for EU's 2040 climate goal slips

Brussels, 17 March (Argus) — The European Commission appears to have pushed back an official proposal for a 2040 climate target for the EU, which will further delay the bloc's submission of a 2035 climate plan to the UN. The commission's agenda does not include the presentation of a legal proposal for a 2040 climate target before the end of the first quarter. The commission in February 2024 confirmed its preference for a 90pc cut in greenhouse gas emissions (GHGs) by 2040, from a 1990 baseline — but this was not a formal proposal. The commission had scheduled an amendment to the European Climate Law for the first quarter of 2025. That amendment would write an intermediate target for 2040 into EU law. The 2040 target would also provide the basis for the EU's updated nationally determined contribution (NDC) — or climate plan — to UN climate body the UNFCCC. Countries and jurisdictions were expected to submit updated NDCs, covering up to 2035, to the UNFCCC by 10 February. Officials said work is "ongoing" on the bloc's 2040 climate target. It would be presented "sooner rather than later" and there is still "time left until the end of the first quarter". An EU source indicated reluctance to present a 2040 climate plan before Poland's presidential elections on 18 May, which may have a runoff on 1 June. Poland chairs meetings of EU ministers until 1 July. The source also said several other parties to the UNFCCC have missed the 10 February deadline to submit their 2035 emissions reduction targets. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil to pilot reforestation concession

17/03/25

Brazil to pilot reforestation concession

Sao Paulo, 17 March (Argus) — Brazil's Para state in the Amazon basin will concede reforesting 10,000 hectares (ha) in the Triunfo do Xingu environmental reserve as part of efforts to protect more rainforest ahead of the UN Cop 30 climate summit in November. The 40-year concession will require R258.3mn ($45.3mn) in investments and capture an estimated 3.7mn metric tonnes (t) of CO2 equivalent (tCO2e)/yr, according to the Para state government. The 1.6mn ha Triunfo do Xingu reserve, which was created in 2006, has seen significant environmental degradation in recent years from illegal deforestation. Last year, the reserve lost 1,400km² (870 mi²) to illegal deforestation, the bulk of which was converted into pastureland. The concession, which will be Brazil's first for reforestation, will be a test case for the government's efforts to recover its tropical forests and is possible because of legislation approved in 2023, which allows carbon offsets to be issued on public lands. The auction will take place on 28 March at the B3 stock exchange, in Sao Paulo state. The winner of the project will be allowed to sell carbon offsets and environmental services credits, which will be generated by reforesting and preserving the forest. The sale of some forestry products is also approved. The Para state government estimates that the concession will generate gross revenues of R21.7mn/yr. Para will also sell two other 10,000ha concessions later this year, it said. Brazil has continued to reduce deforestation in the Amazon forest. It lost just 80.9km² of Amazon rainforest in February, down more than 64pc from the same month last year. February deforestation was the lowest on record, according to the science and technology ministry's national space institute INPE. Brazil's goal is to eliminate all deforestation by 2030. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

German climate fund to get €100bn under new government

14/03/25

German climate fund to get €100bn under new government

Berlin, 14 March (Argus) — The parties likely to form Germany's next government today doubled their proposed climate action share to €100bn to reach an agreement with the Green party to secure the passing of their debt-financed defence and infrastructure package. The right-of-centre CDU/CSU, centre-left SPD and Green parties today announced that the latter had agreed to the former's budget proposals, paving the way for a successful vote in the lower house of parliament on 18 March. The prospective coalition parties for Germany's next government following last month's federal elections need the Green party for a vote on three changes to the federal constitution, which now appears certain to be won, barring protest votes by too many CDU/CSU deputies or absences. In addition to the proposed €500bn special fund for infrastructure, the coalition parties propose to exempt defence spending from the constitutionally enshrined debt brake, and to lift the debt limits on federal states. The CDU/CSU and SPD had yesterday offered the Greens an allocation of "up to" €50bn from the infrastructure fund to the climate and transformation fund KTF. According to the final agreement, the infrastructure fund will be valid for 12 years instead of 10 as originally planned. This is equivalent to some €41.6bn/yr, of which €33bn will be allocated to the federal government and the remainder to the federal states. A limit of 10pc of the federal budget will apply, with the federal ministry to clarify the details. The infrastructure fund bill stipulates funding be made available only for "additional" tasks. Outgoing economy minister Robert Habeck said in Berlin before the agreement was announced that the Greens would not accept the possibility, under the infrastructure fund, of incurring debt only to be able to then cut taxes. Habeck noted the "irony" of the fact that the transport sector's dismal performance in cutting emissions , owing in part to last year's sharp drop in electric vehicle (EV) sales, can be partly attributed to the same CDU/CSU that is now proposing EV buyer's premiums and a huge increase to the KTF. The CDU/CSU in 2023 sued the outgoing government over its attempt to transfer remaining money earmarked for fighting the Covid-19 pandemic into the KTF. The constitutional court's ruling in November 2023 against this transfer of about €60bn threw the government's climate and spending plans into disarray, leading among other things to a swift axing of Germany's EV buyer's premium. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more