E3G

The review of the EU Emissions Trading System (ETS) is no longer just about the carbon market; it has become a defining political debate about the EU’s industrial future. It will test whether the EU can reconcile competitiveness, decarbonisation and fiscal pressures in a more contested geopolitical environment – all while securing lasting political support.

The European Commission has set an objective of reducing administrative burdens and reporting obligations by at least 25% for all businesses and at least 35% for SMEs, by 2029. In the face of weak growth, a growing investment gap, and high energy prices, influential European political leaders have called for a regulatory deep clean of laws that “appear outdated”.

As the European Commission prepares to reveal its proposal for the EU ETS on 15 July, the poll’s findings challenge calls to weaken the mechanism, revealing widespread public support for its core principles: making polluters pay and rewarding industrial decarbonisation. Citizens also support that any remaining free allowances should come with conditionalities to real climate action and just transition.

Governments and businesses are putting electrification at the top of the international agenda as a practical response to the twin energy and climate crises.

The EU Emissions Trading System (ETS) remains one of Europe’s most important tools for cutting emissions, raising revenues and supporting industrial transformation. The 2026 review needs to strengthen this role: protecting the carbon price while making the system’s resources work harder for clean industrial investment.

Achieving global climate and development goals requires a step-change in investment across emerging markets and developing economies (EMDEs). Yet capital flows remain far below what is needed. Unprecedented geopolitical and economic volatility are constraining the ability to finance climate transition and resilience investment while driving private capital out of these markets just when it’s needed most.

UK homes’ reliance on gas represents an Achilles heel to the country’s national security. The energy shocks resulting from the Russian invasion of Ukraine and the disruptions in the Strait of Hormuz inflicted severe economic and social toll on the UK and its citizens. Moreover, the UK’s highly centralised import infrastructure is vulnerable to attack or sabotage, which could disrupt supply to millions of households.

The heavy gas reliance of UK homes presents a critical threat to the UK’s national security: The UK’s gas infrastructure is highly vulnerable to attack with supply concentrated in just four locations. High and volatile oil and gas prices linked to conflicts and chokepoints have caused immense economic damage to the UK economy and the UK’s financial exposure will not improve however much oil and gas is drilled in the North Sea, which is in terminal decline.

At the Global Energy Transition and Electrification Summit (GETES) at Mansion House, co-hosted by UK Energy Secretary Ed Miliband, E3G, the Global Renewables Alliance (GRA) and the We Mean Business Coalition (WMBC), international leaders rallied together at London Climate Action Week to chart a new pathway through a perilous moment: the greatest energy security crisis of our times, and the imperative to build a pathway to long-term energy resilience, economic prosperity and a safe climate.

Blog Nick Mabey, CEO E3G and Chair London Climate Action Week 22 Jun 2026 Mark Carney’s observation at Davos of a “rupture” in international affairs is often misunderstood. Immediate headlines focused on his observation that the move to more power-based diplomacy was a belated recognition of evolving geopolitical realities since the Cold War.