EU climate commissioner Wopke Hoekstra presents a review of the emissions trading system that seeks a political balance between giving industry more leeway to emit carbon and forcing those allowances back into decarbonisation, aligning the scheme with the bloc’s goal of cutting emissions by 90 % by 2040.

Industries will receive more free allowances and a longer timeframe to emit, but the free permits must be reinvested in green projects. Departing flights within a 5,000 km radius, additional shipping routes and private jets will be added to the scheme, while member states must direct at least half of ETS revenues toward industrial decarbonisation — a move likely to face resistance from finance ministers. The sectors covered by ETS1 account for 40 % of EU climate emissions.

EU economy commissioner Valdis Dombrovskis simultaneously unveils a banking competitiveness report proposing larger, less‑constrained banks, simplified capital requirements, easier cross‑border liquidity allocation and fewer national barriers to mergers, arguing the post‑crisis framework has served well but needs proportionality.

Negotiations on key details continued late into the night, underscoring political sensitivities. Hoekstra calls the package “ambitious, pro‑climate, pro‑industry, pro‑Europe,” though whether it satisfies competing demands remains uncertain.