The European Parliament held a topical debate on 20 May 2026 on reviewing the EU Emissions Trading System (ETS) to support competitiveness, requested by the ECR group. The debate revealed a deep split between groups defending ETS as essential for decarbonisation and independence (S&D, Renew, Greens/EFA, Left) and those demanding major reforms or abolition to protect competitiveness and households (ECR, PfE, ESN, some EPP).
Nicola Procaccini (ECR, Italy) argued the ETS is an ideological burden harming industry and families, calling for a full revision, including scrapping ETS2 and addressing carbon leakage via shipping. Commissioner Wopke Hoekstra acknowledged competitiveness issues but defended ETS as a market-based tool that saved gas imports, stressing the need to reward frontrunners while supporting the middle, and to redirect ETS revenues back to industry. Peter Liese (EPP, Germany) backed reforms like more free allowances for investing companies but warned against blaming ETS for all ills, criticizing ECR for inconsistency. Mohammed Chahim (S&D, Netherlands) insisted ETS is essential to reduce fossil fuel dependence and demanded member states invest revenues in decarbonisation, warning the Commission not to take S&D votes for granted. Jordan Bardella (PfE, France) condemned ETS2 as a tax on families and industry, calling for liberalisation and an end to green policies. Patryk Jaki (ECR, Poland) claimed ETS only benefits consultants and China, calling it dangerous for Europe. Emma Wiesner (Renew, Sweden) rebutted that ETS is the way out of fossil fuel addiction, urging an end to suspensions. Michael Bloss (Greens/EFA, Germany) compared critics to a child blaming a wardrobe, arguing renewables lower prices. Li Andersson (Left, Sweden) linked the crisis to Trump's war and demanded more renewable investment. Ivan David (ESN, Czechia) called for scrapping the Green Deal. François-Xavier Bellamy (EPP, France) stressed families' distress and defended nuclear energy. Tiemo Wölken (S&D, Germany) and Paolo Borchia (PfE, Italy) urged investment in renewables. Alexandr Vondra (ECR, Czechia) warned of factory closures if ETS2 proceeds. Pascal Canfin (Renew, France) argued reform is unavoidable to avoid ETS becoming a gravedigger. Lena Schilling (Greens/EFA, Austria) criticised right-wing groups for lacking substance. Dario Tamburrano (Left, Italy) highlighted €18 billion in ETS revenues for renewables. Anja Arndt (ESN, Germany) called for abolishing ETS, citing IPCC scenario errors. Elena Yoncheva (S&D, Bulgaria) urged a balanced transition preserving coal reserves. Borys Budka (EPP, Poland) noted ETS cannot be cancelled but must be reformed.
Energy-intensive industries face higher costs if ETS is maintained, but benefit from free allowances and revenue recycling. Households bear higher energy prices, especially under ETS2. Fossil fuel importers lose market share as ETS reduces demand. Renewable energy producers gain from carbon pricing and revenue reinvestment. A review is scheduled for 15 July 2026.