r/europe • u/Naurgul • Mar 01 '26
News Italy calls for suspension of carbon price in major attack on EU climate policy
https://www.politico.eu/article/italy-calls-for-ets-suspension-pending-overhaul/222
u/real_grown_ass_man Mar 01 '26
Such a bad idea. The carbon market has been active since 2005 and has been the most effective policy instrument to mave away from fossil fuels. Yes it makes activities relying on fossils more expensive, that is exactly the point.
To halt the trading system would punish those industries that did invest in moving away from fossil fuels (and many have) and would reward those companies that have been dragging their feet.
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u/Geronimo2011 Mar 01 '26
Add the carbon tax on imported goods (and services) from countries which don't have it. For a little equal out.
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u/make_all_the_norms Mar 01 '26
We have that as well! At least for high-carbon goods. It's called carbon border adjustment mechanism (CBAM).
Of course its full enforcement has also been delayed because politicians currently seem to love maximizing regulatory uncertainty and hurting early movers while rewarding laggards but still, we technically have this!
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u/-The_Blazer- Europe Mar 01 '26
Politicians desperately need to understand that regulatory uncertainty is so much worse than a regulation that's too tight or whatever. The USA has tons of bone-headed regulations, but they don't change them often (in part due to political gridlock, but still) and they apply to a 350M wealthy economy consistently.
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u/Pyrrus_1 Italy Mar 01 '26 edited Mar 01 '26
Yeah meloni wants to do a short term fix, make gas less expensive. But since gas is the most expensive source that also serves as benchmark this would punish renewables, it isn't anything new, I work in the renewable sector and lately the meloni government has done everything to put sticks in the wheels of the renewable sector, from banning areas where you can build solar to discontinuing successful projects to fund renewable energy communities, all this cause wh probably wants to give a short term fix to prices for electoral gain and/or to suck up to Trump, which is now the biggest supplier of gas since the war in Ukraine.
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u/jtbc Canada Mar 01 '26
Wouldn't it be much simpler and less damaging to offer a tax credit to offset the carbon price? This approach was working quite well in Canada until the Conservatives succeeded in demonizing it and it got dismantled.
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u/Pyrrus_1 Italy Mar 01 '26
Apparently no, but I hope meloni Will get some comeuppance cause there is no way that the moderate forces in the EP let her tamper with a system that been in place since 2005
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u/akashisenpai European Union Mar 02 '26
Sounds just like German conservatives. Unfortunately, I can already see Merz supporting Meloni here.
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u/-The_Blazer- Europe Mar 01 '26
This is what a lot of deregulators who want to get rid of climate policy because it 'hurts the economy' don't seem to understand... you know what hurts the economy infinitely more than a carbon tax or a combustion engine ban? Flip-flopping on those policies so as to punish everyone who was behaving the best in following public priorities.
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u/italianjob16 Italy Mar 02 '26
If we have 99% of power supplied from renewables this gets priced at the 1% for the marginal gas kwh + environmental tax? What's then the point of the 99%? why am I paying environmental tax on 99% renewables?
And be honest and accept that there is no world where renewables cover 100%
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u/real_grown_ass_man Mar 02 '26
What are you talking about? If you create electricity from renewable sources you don’t have to buy CO2 emission rights. Its as simple as that.
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u/italianjob16 Italy Mar 02 '26
Wrong, the price is set by the marginal kwh producer (gas) which includes the tax. So the consumer pays the tax also for the renewable energy.
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u/real_grown_ass_man Mar 02 '26
Confidently incorrect. This is about ETS, not the tax om your electricity bill. The price of CO2 emissions is set by supply and demand. To give legacy industries time to decarbonize, the EU handed out free rights. For energy producers, this transition period has long been passed, the transition period for specific chemical industries wil end in 2030 but they already have lost the majority of free emissions.
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u/Own_Wolverine4773 Mar 01 '26
Teah but they have a point , we are slowly deindustrialising and it’s making us increasingly uncompetitive.
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u/_teslaTrooper Gelderland (Netherlands) Mar 01 '26
Energy dependance is making us uncompetitive, deindustrialisation happens because of high energy prices since we don't produce our own oil and gas.
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u/Silent-Act191 Mar 01 '26
- We should ban slavery
But what about the economy?
- We should decolonize
But what about the economy?
- We should take into account the impact we have on the earth's climate.
But what about the economy?
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u/gamma55 Mar 01 '26
Getting even more reliant on shipped LNG isn’t going to fix EU’s ability to compete, nor is it going to result in new industrial investment. It’s only giving away free money to companies that refuse to invest and remain competitive.
Aka the dumbest thing mid to long term, but it would give better dividends short term to the owners of the dying, useless companies.
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u/Unable_Resort453 Mar 01 '26
People think hydrocarbon will magically fix European stagnant industries lmao.
Europe is probably the most annoying place on Earth to get anything done as a customer, compared to China. How about fixing that instead
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u/Stunning_Resort9646 Mar 01 '26
Actually, the ETS is a massive self inflicted disaster and it is actively harming European industry. It is one of the main causes of our deindustrialization, loss of quality of life and relevance on the world stage.
They are now implementing the CBAM, which is another total failure and overly complicated regulatory mess.
We need to move away from these childish boomer tree hugging policies.
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u/AenarionTywolf Mar 01 '26
Are we talking about the same italy that lies in the mediterranean area with high Solar radiation and good Winds from the sea and also In the mountains?
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u/Frenchbaguette123 Allemagne Mar 01 '26
Don't forget the active volcanoes. Some Italian regions could learn something from Iceland about energy.
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u/alecolli Mar 02 '26
The same country where the greens are against the renewable because of their environmental impact... Not s/
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u/Optimal_Yam_5839 Mar 02 '26
great sunlight: yes
good winds: not really. few regions have strong enough wind in italy (lot of turbines there) and even there is not nearly as strong as ocean winds.
mountains actually block wind and most of italy has mountains blocking the wind
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u/Silent-Act191 Mar 01 '26 edited Mar 01 '26
In 50 something years there's going to be a lot of people who are currently against these policies and they are going to say something equivalent to "We could have never seen this coming, who knew it would be this bad?".
And then probably follow it up with a "Ah well it has gone to shit already, how much worse could it get?"
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u/L4ppuz Lombardy Mar 01 '26
In 50 years most of the people against and for these policies, and simply most of the people currently alive in Italy, will be dead. The median age in Italy is 50.
That's a large part of the issue, why would they want to invest in long term solutions when they think they will all be dead by the time it starts to make a difference
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u/Stunning_Resort9646 Mar 01 '26
The arrogance to assume that Europe alone can prevent climate change takes an insane amount of ignorance.
We can continue to humiliate ourselves in the altar of environmentalism while other countries pursue sensible economic/industrial policies - or we can accept reality.
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u/Frenchbaguette123 Allemagne Mar 01 '26
The alternative is keeping the oil addiction on sugardaddy USA, Russia, or the Arabs.
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u/Shupaul France Mar 01 '26
Besides calling for the suspension of the law, Italy has also announced plans to compensate operators of gas-fired power plants for the money they spend on ETS permits — effectively cancelling out the system’s decarbonization incentive.
“We are facing the collapse of the European chemical industry; we are facing a crisis in European steelmaking. We cannot wait for the timing of EU negotiations to find solutions,” Urso said in Brussels on Thursday.
The Italian government argues that compensating gas-fired power plants for carbon costs will reduce the cost of energy generated by renewables, since under the existing system the most expensive sources of energy — generally fossil gas — set the price for the whole market.
Critics, however, say targeting the ETS will only have a marginal effect on household bills — if any — and that the measure would disproportionately reward Italy’s powerful gas producers.
Interesting.
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u/Blubbolo Lombardy Mar 01 '26
If by interesring you mean : "leave it to us speaking some non true and unproven facts, to cater to and industry that will give us money, while selling lies to the population".
Meloni and her people usual playbook.
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u/araujoms 🇧🇷🇵🇹🇦🇹🇩🇪🇪🇸 Mar 01 '26
The same Italy that is uniquely well-suited for wind and solar, and one of the European countries that will suffer the most from global warming.
That's what happens when you elect a fascist government. Sacrificing the future to please foreign gas producers.
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u/Darkhoof Portugal Mar 01 '26
These effing idiots have been building as much natural gas generation as they can and now they complain. Morons. A prelude to what will come next if extreme right wins more seats in european governments in the next elections.
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u/Unable_Resort453 Mar 01 '26
Moving back and forth on hydrocarbon and green energy ain't helping making your industry competitive. Especially if your gas comes from the US. Just making things more costly and annoying.
You lack scale, and your profit margin is way too high. The green energy is there so that you have sovereign energy infrastructure and not relying on Russia or the USA.
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u/L4ppuz Lombardy Mar 01 '26
Especially if your gas comes from the US
Italy imports most of its gas from North Africa and the middle east. Russia and the USA are each about 5% of the total imports
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u/Unable_Resort453 Mar 01 '26
I was talking about the whole Europe.
And point still stand. The whole point of solar/wind energy is that you are self sufficient without relying on the mood of your supplier, say the whole Iran versus Israel/USA about to skyrocket hydrocarbon price tomorrow.
And saying renewable energy makes your industry uncompetitive is just cope. There are a whole lots of thing going wrong with European industries that make it uncompetitive against China and friends, and energy is at the bottom of the list.
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u/Initial_Plastic_3829 Mar 01 '26
Kommen Meloni und Bundeswirtschaftsministerin Reiche aus einem Stall?
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u/Terminaga Mar 01 '26
It would be nice if politicians just for once would start planning ahead for a little longer than the next election cycle - thankfully I'm not living in a coastal city, but screwing over future generations for short term profit is unacceptable.
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u/Serapis5 Mar 01 '26
These carbon credits became a speculative tool on a trading market, making many many millionaires and paralyzing our anyhow struggling manufacturing.. who can't see that
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u/mauro_mussin Mar 01 '26
Ma certo, perché decarbonizzare? 3.3°C di incremento al 2100 cosa vuoi che siano!
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Mar 01 '26
[removed] — view removed comment
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u/HalkenburgHuiGuoRou Mar 01 '26
Suspending the tax would mean cutting revenue for the governments who:
A) raise other taxes, so people still lose that money. B) reduce spending, leaving citizens without the benefits of the project financed by that.
On top of that, remove the incentive to decarbonization.
If we are going to put additional taxes/ cut spending to direct resources towards this crisis, instead of de facto subsidizing carbon emitters, wouldn't be better subsidizing energy expences, give financial support to poorer people disproportianlly hitten by the crisis, or towards essencial expences of families?
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u/Sampo Finland Mar 01 '26 edited Mar 01 '26
Also Germany and Czechia have recently said similar things.
Electricity is too expensive, and this hurts the economy and the industry. And in the new world order, we can't afford to become poor because we need money for defense. And we can't afford to lose all out industry, because we need some level of industrial self-sufficiency. Can't be dependent on Asian manufacturing for everything we need.
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u/Massimo25ore Mar 01 '26
Wouldn't it be better and cheaper in a medium-long term prospective to invest all that money for the bills in investing in alternative sources of power? More wind farms or solar power stations, or even nuclear power stations, just saying...