Episode Details

Europe’s flagship emissions trading system is facing a major overhaul — and it’s sparking fierce debate. The EU’s new proposal eases the burden on heavy industries by extending free pollution permits and slowing permit reductions, aimed at keeping factories competitive amid soaring energy costs and global pressure. But environmentalists warn it’s like pulling blocks from a Jenga tower — risking the whole system’s integrity. While the ETS has slashed emissions by 47% since 2005 and is set to expand to cover waste and short-haul flights, critics say these tweaks could undermine Europe’s 90% emissions cut target by 2040 — and even push green investments overseas. The question now: can Europe balance economic competitiveness with climate ambition?

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