When the European Union launched its green deal in 2019, putting into law the goal of climate neutrality by the middle of the century, it showed strategic foresight as well as global leadership. Russia’s war in Ukraine has starkly underlined the extent to which the continent’s energy security – and its future prosperity – is dependent on the transition away from fossil fuels. Lately, however, EU leaders’ environmental approach appears to be echoing the youthful St Augustine’s plea on chastity: make us greener, but not yet.
The recent European Industry Summit in Antwerp made unusually big headlines thanks to Sir Jim Ratcliffe’s xenophobic outburst over immigration. But it was also notable for fierce attacks on one of the most important pillars of EU environmental policy. The bloc’s emissions trading system (ETS) – which makes polluters pay for the C02 they emit – has achieved dramatic results in driving down overall emissions since 2005 and encouraging green innovation. Worryingly, the German chancellor, Friedrich Merz, appeared to sympathise with demands from Sir Jim and other CEOs for a radical relaxation of the rules.
