The European Parliament's Committee on the Environment, Climate and Food Safety held a public hearing on 2 June 2026 on the EU Emissions Trading System (ETS), with MEPs staking out divergent positions on the system's future direction. EPP MEP Peter Liese opened by stressing the need to maintain the ETS as the EU's main climate tool while addressing carbon leakage and competitiveness. S&D MEP Mohammed Chahim pushed back against calls to weaken the system, arguing that higher carbon prices are necessary to drive industrial decarbonisation. Greens-EFA MEP Bas Eickhout questioned the effectiveness of free allowances and called for a faster phase-out. ECR MEP Alexandr Vondra expressed concerns over the social impact of rising energy costs and urged more support for energy-intensive industries. Renew MEP Emma Wiesner highlighted the importance of linking the ETS with the Carbon Border Adjustment Mechanism (CBAM) to protect EU industry.
The hearing featured expert testimonies from the European Commission's Director-General for Climate Action, who outlined plans to expand the ETS to new sectors, and from industry representatives who warned against overly ambitious timelines. No formal decisions were taken, but the debate will feed into the upcoming revision of the ETS Directive. The discussion exposed a central cleavage between those prioritising industrial competitiveness and social fairness (Liese, Vondra) and those advocating for stronger carbon pricing to accelerate decarbonisation (Chahim, Eickhout). The outcome of the revision will have major impacts on heavy industry, power generators, aviation, and households, with particular attention to carbon leakage risks and social fairness.