Austria, Czechia, Hungary, Slovakia, and Poland are pushing for changes to the European Union's carbon market to give European industry more time and flexibility to cut emissions.

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France and Germany reached a provisional deal on October 15, 2026, to soften EU car emissions targets and allow the UK to join the Made in Europe scheme.

The Franco-German deal eliminates the requirement for automakers to offset residual 10% emissions through low-carbon steel or sustainable fuels under proposed 2035 rules.

The Franco-German deal extends proposed EU super credits for electric vehicles to all car sizes and allows cars running on renewable fuels to count as zero-emission.

The prime ministers of Finland, Sweden, and Denmark opposed weakening the EU Emissions Trading System, writing in a letter that the system drives energy security and reduces fossil fuel reliance.

Italy, Slovakia, Hungary, Poland, and the Czech Republic called at the EU summit for the introduction of the ETS2 emissions trading system to be postponed until 2030 due to Middle East war impacts.

The Franco-German automotive deal was agreed upon after German Social Democrats in Chancellor Friedrich Merz's government dropped their opposition.

The United States and several European Union member states, including Czechia and Italy, have urged the European Commission to delay or roll back the methane emissions law, with some calling for a three-year delay.

European Commissioner for Energy Dan Jorgensen announced on October 6, 2026, that the European Union plans to delay the implementation of methane emissions rules for oil and gas imports by one year.

The EU should delay its methane emissions rules for oil and gas imports by three years

The European Commission proposed raising approximately €60 billion annually through EU-wide levies, including carbon market contributions, carbon-intensive import tariffs, electronic waste taxes, tobacco duties, and corporate levies.

Eurofer head Alex Eggert stated that withdrawing carbon leakage protection too quickly risks undermining the multi-billion-euro investments in electrification, hydrogen, and CCS/CCU needed to make the industrial transition to climate-neutrality

The European Union's Carbon Border Adjustment Mechanism requires importers of carbon-heavy goods like steel, aluminum, and fertilizer to declare embedded CO2 emissions and pay a levy exceeding European Union standards.

Russia filed its initial World Trade Organization complaint against the European Union's Carbon Border Adjustment Mechanism in May 2025, requesting consultations that the European Union rejected.

Trading partners including Brazil, South Africa, and India oppose the Carbon Border Adjustment Mechanism, arguing that the levy creates additional challenges for developing economies.

The World Trade Organization Dispute Settlement Body agreed on September 25, 2026 to establish an expert panel to review Russia's complaint against the European Union's carbon border levy.

Russia argues that granting certain companies quotas under the European Union Emissions Trading System effectively amounts to an export subsidy and strengthens the competitive position of European producers.

The European Union Emissions Trading System has helped cut emissions from covered sectors by more than 50% since 2005 while generating more than €270 billion in revenues.

Austria, Czechia, Hungary, Slovakia, and Poland argue that factories should only make major decarbonization investments when basic conditions like affordable electricity and CO2 transport infrastructure are in place.

Eurofer head Alex Eggert stated that the European steel industry would reach climate-neutrality while producing in Europe.

The European Commission's draft proposal, set for release on September 14, 2022, includes a voluntary target for European Union countries to reduce their overall electricity consumption