Battle in Brussels over the EU's climate policy - several countries want to allow more emissions

Europe looks set to head for another winter of soaring energy prices. The wars in the Middle East and Ukraine have driven up prices on the continent to a level that is burning holes in wallets and coffers. Many companies are also on their knees.

Several EU leaders now connect the price shock with the EU's climate policy. In the loophole is the emissions trading system (ETS), which means that companies must pay to be allowed to emit greenhouse gases. For energy-consuming and dirty industries, it becomes particularly noticeable.

- The ETS drives up prices artificially and damages our manufacturing companies, said Italian Prime Minister Giorgia Meloni before the EU summit in Brussels.

Italy, Poland, Hungary, Slovakia and the Czech Republic not only want to water down the current ETS system, but also postpone the trading of emissions from transport and buildings (the ETS2 system to be introduced in 2028) to the future.

But they face strong opposition from Sweden's government, which sees emissions trading as one of the most effective tools for coping with climate change and strengthening Europe's competitiveness.

- Several countries want to make the connection between the ETS and the high energy prices. We believe, on the contrary, that it is our dependence on fossil fuels from Russia and the Middle East that is the major reason for the high prices, says EU Minister Jessica Rosencrantz to DN, at the summit in Brussels.

- It is also important for our Swedish companies that were early in the transition. They need predictability and should not be penalized for changing.

Denmark and Finland are also on Sweden's side, as are Germany, France, the Netherlands and Spain.

The discussions between the EU leaders were sometimes heated and went on for so long that the President of the European Council, António Costa, had to cancel a planned press conference on Thursday night. According to DN's sources, several leaders wanted to rewrite the texts at the negotiating table.

- We were more countries that counterattacked and won the battle. But it will continue to be a contentious issue in the autumn, says Rosencrantz.

During the autumn, the EU Commission will review the ETS system.