Energy Daily

Europe’s Flagship Climate Tool Tests Political Limits

The region’s market for carbon permits is drawing attention from governments wary of voter backlash.
French President Emmanuel Macron and German Chancellor Friedrich Merz arriving at an informal European Union leaders retreat in Rijkhoven, Belgium last week.Photographer: Simon Wohlfahrt/Bloomberg
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Welcome to our guide to the commodities driving the global economy. Today, senior climate and energy reporter Ewa Krukowska examines what’s next for Europe’s flagship climate tool — its market for trading carbon emissions.

The European Union’s carbon market is facing its biggest political test in years, as some governments openly debate weakening the system and industry pushes for relief.